As variable rate is above prime right now, 5 year fixed rate looks like a good idea as it slides down less than 5%. For people planning to buy in 3-4 months, seems like a good option to get pre-qualified to hold the rate, if rates go down even further then they have benefit of getting the new lower rate, but if not they will be happy that they had the rate on hold.
Looking at market conditions, looks like lot of people are waiting and watching. It is still a good idea to work with a mortgage planner, who is well aware of market conditions and work in your best interest.
Saturday, December 20, 2008
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Hey Renu.. a wonderful idea...and actually as Edmonton Journal once said... variable below prime has become like an extinct act... its better to stick with what we have... infact my mortgage company sent me a letter inviting me to sign up for fixed from variable... but then I decided to stick with variable... as more of it can be alloted towards principle and lastly i feel @ the end of the day, it's a smart move..
ReplyDeleteLastly my big YES to see a mortgage broker than approaching a bank directly.... Well, you visit both the places and you will find the difference...
cheers!