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The current 3 year interest rate offers some amazing opportunity at the moment. While most consumers have been brainwashed into believing that the 5 year rate is the best option (since it is the most popular) there are often better options to suit a consumers needs. Most Canadian mortgage brokers now have access to 2.90% on a 3-year fixed, which is near the lowest rate ever for this term. This promotion includes all the normal bells and whistles: 20% prepayment options, double-up payment privileges, portability, a 120-day rate hold, etc. (minimum $200k loan amount) Despite the great rate, a lot of people shy away from three-year terms, preferring instead the security of a five-year mortgage. At 2.90%, however, you have lots of breathing room. Amortization analysis suggests that interest rates could rise by 3% and most people may still be better off by choosing a 2.90% three-year term. Think about that for a moment. This assumes: * Successive 3-year terms (i.e., your first mortgage would be at 2.90% and you’d renew at 5.90% in three years) * A 5-year (60-month) comparison period. * Comparison against fully-discounted and fully-featured 1, 2, 4- and 5-year fixed terms, as well as 3- and 5-year variables. * A 3% linear rate increase over five years, beginning in June 2010, and going up every three months thereafter. (This isn’t a prediction, just an assumption for analysis purposes.) Disclaimer about this product: Pre-approvals are not permitted on this promotion. Clean credit and a 640+ minimum credit score are required. As always, please consult a licensed mortgage planner for details and to confirm suitability.
Article Source: http://www.gambling-articles.org
Robert May is a Realtor, as well as the broker and owner of Rainbow Realty of Lethbridge Alberta . He is also a licensed Lethbridge mortgage broker and financing expert with Canada First Mortgage of Calgary Alberta. He has been in the Lethbridge real estate industry since 1993 and offers full Lethbridge MLS real estate services to Lethbridge and surrounding area, as well as Lethbridge mortgage financing, mortgage refinancing , and preapprovals. Check the following link: lethbridge mortgage broker
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