by qdhanwantc
24. January 2012 16:11
Pondering merits of low-rate mortgage financing
Crunch the numbers when deciding whether to convert from variable, brokers say
By Tracy Sherlock, January 20, 2012
With today’s unprecedented low interest rates, homeowners may be wondering if it’s a good time to refinance or lock in their variable-rate mortgages. The Bank of Montreal last week introduced a 2.99-per-cent five-year mortgage — believed to be the lowest five-year fixed mortgage rate ever.
Although BMO’s low-rate mortgage has some restrictions — including a maximum 25-year amortization and limited prepayment options — it could potentially save a lot of money for homeowners who qualify.After BMO announced the new mortgage, some other banks followed suit, announcing similar low-rate products, but none we found that match the five-year term. TD and RBC announced 2.99-per-cent mortgages for four-year terms.
“In today’s environment, it’s an extremely competitive rate at about [.5 of a percentage point] off what most financial institutions have posted right now,” said Carolyn Heaney, area manager for specialized sales, BMO. “
People are very interest-rate savvy, so a 2.99 has caused a lot of inquiries.”
Read more:
http://www.vancouversun.com/business/real-estate/Pondering+merits+rate+mortgage+financing/6027016/story.html#ixzz1kQr85GI8
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