Variable | 2.75% | 2.15% | 0.60% |
1 Year | 3.65% | 2.49% | 1.16% |
2 Years | 3.95% | 2.95% | 1.00% |
3 Years | 4.70% | 3.45% | 1.25% |
4 Years | 5.34% | 4.09% | 1.25% |
5 Years | 5.49% | 3.99% | 1.50% |
6 Years | 6.45% | 5.25% | 1.20% |
10 Years | 6.30% | 4.99% | 1.31% |
15 Years | 7.55% | 6.90% | 0.65% |
25 Years | 8.25% | 7.00% | 1.25% |
**Rates subject to change without notice Last Updated: Tuesday, July 27, 2010
What Type of Mortgage is best for you?
There are many forms of mortgages available; it important to choose the features that suit your individual needs best. Before deciding, it is important consider:
What are my long term financial goals? How long do I plan on staying in this home? Will I be monitoring interest rates on an on-going basis? Can I make any extra payments during the year, to payoff this mortgage faster?
Fixed or Variable?
Fixed Rate:
A fixed rate mortgage provides you with the security of knowing that your interest rate and monthly payments will remain constant for the duration of your mortgage term. By choosing a fixed rate, you will know exactly how much of your
mortgage balance will be paid off at term end. In addition, if rates rise during your term, you will be not be negatively affected (as your payments remain constant). This is a great option if you are comfortable with your current interest
rate, and don’t want to have to frequently monitor rates and worry about changing market conditions.
Variable / Adjustable rate:
Variable rate mortgages fluctuate with the market prime rate for the duration of your term. Historically, variable rates have been lower than fixed rates, providing you with additional interest savings. VRM’s can have either floating payments
that move with interest rates or fixed payments. With fixed payments, as rates drop, more of your payment will be applied towards principal, when rates rise, payments will be weighted more towards interest. A major advantage is that a variable
rate can be converted to a fixed rate at anytime with no penalties. Therefore you can take advantage of low variable rates, and when rates begin to rise, you can lock into a more stable low fixed rate.
Interest Only:
Interest only options are an excellent choice if you would like to lower your monthly payment or increase your purchasing power to as much as 30%. The funds you save from lower mortgage payments can be put towards paying of high interest
loans, starting your own business, saving for a vacation, investments or any other use you desire. In addition you will enjoy the benefits of owning a larger home than otherwise possible with traditional mortgages.
Travis Kulasekere B. Comm |
