Hi Guys,
I have recently bought a house and right now i am trying to decide on Mortgage, below are the three mortgage options i have:
a) 5 years fixed at 3.69%
b) 3 years fixed at 3.15%
c) Variable at 2.25%
I am a salaried person, so have fixed income per month and dont like to take financial risk. What would you advice ?
I am thinking to go with options a), but wanted your advice/opinion.
Quote:
Originally posted by kabutar12
I have recently bought a house
Congrats.
Quote:
Originally posted by kabutar12
I am thinking to go with options a), but wanted your advice/opinion.
Go with it. Good option since you prefer to stay away from risk. BTW 3.69 is really good, esp after recent rate increase by banks.
Do take written confirmation for the rate. Last week a friend of mine lost good rate just because he didn't had written confirmation at the time of signing.
Its time to go for fix rate mortgage. If you have variable rate, eventually you save the money over a 25 yr term. BUT now the rate 3,69 is lowest since last 35 yr. Some old people say they have never seen such low rate. People who have variable, turned their morgage to fix this time. SO do not go variable. I have fixed my variable to 3.55% 5 yr fix just a week back.
Congrate on your new home!!!
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એક જ ટીપામાં હો જાણે સાત સમંદર,
એવા ઝંઝાવાત હજુ હૈયાની અંદર
Location: God's own country
Posted on: 08-07-09 08:26:18
Quote:
Originally posted by kabutar12
a) 5 years fixed at 3.69%
b) 3 years fixed at 3.15%
c) Variable at 2.25%
.
Hi kabutar,
Congradulations on the house !
Regarding interest rates, it all depends on your need. If you think that you will be staying in the same house for 5 years min. then you need to go for 5 year fixed.
if you think that you will move to a bigger house / diff location in about 3 years, then you need to go for 3 year fixed.
The concencus is that interest rates will not increase till June 2010, so you are safe for one year at Variable 2.25%. Then may be in the next year, it may raise up by 100 bp (or 1 %) and so for a 2 year time frame, you may be safe with the variable rate.
I hope you know that when you switch houses (selling and buying a bigger one), you need to close your mortgage and get a new one. and when you do that you will have to pay a penalty for closing the mortgage. So the lesser time on the mortgage remaining may get you a lesser break fee.
So you are the one to decide.
Peace by TK
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I am a Gents and not a Ladies.
Thanks a lot for your replies..
I am going with 5 years fixed Mortgage then...
Cheers
Kabutar
Congrats Kabutar12 ... 
Is it in Brampton ? 
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Fido.
Thx Fido 
, yeh its in East Brampton
