Boring mortgage question
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It's renewal time. Punched the numbers, done my homework and I'm ready getting ready to re-up. Only question my wife and I have been debating is, fixed or variable?
Was curious to hear from some older, wiser and more experienced turfers on what there preference and experiences have been.
Many thanks ✌️
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I've been on a fixed rate and on my 3rd mortgage. I work for the bank and have benefited off the employee discount. If I wasn't a bank employee I would go with the variable rate.
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The projection is for rates to rise slowly due to the scaling back of Treasury purchasing into the bond market. I would get fixed because the rate is still historically low. Lock it in!
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Definantly get fixed
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Get variable would good old baptist lead you in the wrong direction?
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Interest rates will likely not be this low again for a long time so definitely lock in a fixed rate. Buy points with cash if you can afford it, if not roll them into the principle of the loan. Also, I forget what it's called but look into a mortgage that is transferable. If you ever sell the house, you can sell that low interest mortgage with it which could be very attractive to a prospective buyer. Most of all, make sure there's no prepayment penalty.
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An assumable mortgage is what it's called...
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Hi Fallacy,
Interest rates are only going up... Lock in a fixed rate. Rule of thumb-- if u can score a 100 basis point (ie 1%) difference, refinance. Take a look at credit unions- they often offer no or very little points.... Good luck and enjoy the savings! -
Depending on the rates... I did half variable and half fixed.
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If you plan to live there more than five years, go with an assumable fixed rate mortgage. If you plan to move in the next three to five years a variable rate mortgage may be better.
Rates are near hustorical lows. We bought this summer and got a fixed rate around 3.4%. Expect rates to rise, so ifyou go with a variable plan accordingly. If rates rise faster than expected, an assumable fixed rate mortgage will become a valuable selling point.
My parents purchased a house in 1984 at around 13% interest. My wife and I bought our first house at about 9.25%. So, if you can scrap together the down payment, I'd suggest buying before rates go up.
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If in canada and your renewing for 3 years or less do variable
Our economy is not as good as they tell us it is. I'm in the construction business and housing is what runs things. -
Yes. The looming threat of rising rate have been threatening here in Canada for several years. Funny enough, RBC actually cut it's rates today...
The whole thing is perplexing to me. Seems likely and reasonable that rates will start to creep up, and yet they haven't.
My preferred option - like iamcanadian mentioned - was a half and half - half variable, half fixed. If rates started to rise, we could look in the variable component.
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clint crawford wrote:
Oh? I was considering a 3 year..If in canada and your renewing for 3 years or less do variable
Our economy is not as good as they tell us it is. I'm in the construction business and housing is what runs things. -
Always have done fixed, just built a new home and got in at 2.75% fixed! Why take a chance on it rising? Good luck Fal
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FAL, curious what closing costs run in Canada; if they're rolled into the loan, paid out of pocket, or paid by the bank with a higher interest rate offsetting the cost through a premium. If you were in the states and planned in staying in the home long term, I generally reccomend a fixed rate.
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I just refied with a fixed and dropped 5 years of my loan. Good luck Fal.
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Considering there's a mini ice age predicted. It's about to get even colder up north... Sell up and move to the tropics. 🌴🌴
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Hyena wrote:
NOOOOOOOOOOOConsidering there's a mini ice age predicted. It's about to get even colder up north... Sell up and move to the tropics. 🌴🌴
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Ϯℌɛ ǤɪǷǷęƦ wrote:
Do you mean closing costs on house transactions? When I bought our house I believe the closing costs were rolled in, paid by the purchaser.FAL, curious what closing costs run in Canada; if they're rolled into the loan, paid out of pocket, or paid by the bank with a higher interest rate offsetting the cost through a premium. If you were in the states and planned in staying in the home long term, I generally reccomend a fixed rate.
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In the US, you pay transaction costs for refinancing a mortgage; appraisal, title insurance and processing fees. That doesn't happen up north?
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Ϯℌɛ ǤɪǷǷęƦ wrote:
Nope. Not that I'm aware of, maybe I'm in for a surprise on Friday lol.In the US, you pay transaction costs for refinancing a mortgage; appraisal, title insurance and processing fees. That doesn't happen up north?
But no I'm pretty sure we don't up here. At least not on a term negotiation.
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So anytime you re-up, it's with the same bank? Or do you have an option of shopping for a better rate?
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Fixed fal
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Fixed
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I'm on my 3rd mortgage. It's fixed but when rates start rising is better to be on a tracker than a variable.
A tracker stays slightly above the base rate. A variable can do anything -
How long are you gonna live there.
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Go with a fixed rate Fal, it's the smart thing to do
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I read the other day that experts are expecting rates to increase anytime in the next 18 month(UK), I just got a 5 year fixed rate.
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ad_BL6 wrote:
Experts? We don't have financial experts in the states. HA!I read the other day that experts are expecting rates to increase anytime in the next 18 month(UK), I just got a 5 year fixed rate.
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Fixed fixed fixed.
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〓ＦＡＬＬＡＣＹ〓 wrote:
The borrower is slave to the lender. End of story.It's renewal time. Punched the numbers, done my homework and I'm ready getting ready to re-up. Only question my wife and I have been debating is, fixed or variable?
Was curious to hear from some older, wiser and more experienced turfers on what there preference and experiences have been.
Many thanks ✌️
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