Robert McLister·Mortgage Strategies·May 25, 2010Mortgage Term Review Here is the very latest mortgage term review, updated to reflect notable rate developments of the past two months.
Here is the very latest mortgage term review, updated to reflect notable rate developments of the past two months.
I wonder if this euro problem will push up the cost of variable mortgages like the subprime scare did in late 2008. Any thoughts?
3 year fixed mortgages look like a nice middle of the road choice. They are a lot cheaper than 5 year mortgages but without the risk of a variable rate. Just one opinion.
I am buying new house soon…I got 2 rate
5 year close variable 1.75% OR
3 Year close variable 1.35%
which 1 is better?
If 1.35% is from Industrial Alliance I would not take it. Go with a good bank instead at 1.60%.
By the way, you should disclose that this 1.35% rate is only on purchases and only if you use a Realtor that belongs to your broker’s “club.” There is something about that setup I don’t like at all.
I’m approved for the prime -0.90 variable closed from Industrial Alliance and did not have to have a realtor from there “broker’s club”. Lenders other than the big banks have good mortgage products as well and in this case, better.
Dave: Can you elaborate why one would pay 0.25% extra to be with a “good bank ” ?
Everyone: Are there prime – 0.90% for three year out there ?
I dont have any idea about lenders… can you pls tell me why industrial alliance not your choice? is there any particular reasons?
other that mortgage rate and terms what else we should look when choosing the mortgage. Pls advice
Service, pre-payment options, portability, lock in rate if the VRM goes up and service charges. You are buying a mortgage from a box store… You will pay somewhere along the line!
Given that most non-bank lenders offer all of those options, I still don’t see how paying a 25 bps premium is justified, all things being equal.
re: service, most people only need their lender to take out pre-authorized payments from their bank account and respond to infrequent requests to make pre-payments or increase payment amounts. Having the option of going to a branch and listening to sales pitches for lines of credit, identity theft insurance and crappy mutual funds with high MERs is not worth thousands of dollars over the course of a 5 yr term, IMHO.
Still waiting for some information who has Prime – 0.90% variable. (Searched “Industrial alliance, but couldn’t locate that rate).
Would appreciate any info. Looking for renewal in 30 days. Anyone ?
[Edited. Please feel free to post any verifiable lender quotes and links. However, we ask that links to broker sites are not posted. Otherwise the site will be overrun with spam. Thanks for your understanding. – Elizabeth]
Nobody has prime – .90% on a renewal or refinance. It is only available if you are buying a house through one of those shops that make you use their “member” real estate agents. You have to use a “no frills” lender so be careful to read about the restrictions and penalty.