Long term rates vrs. Short term rates. Jerri-ellen Fraser ( Real Estate) Johnson Associates Real Estate Ltd. Brokerage

Real Estate Agent with iPro Real Estate LTD. Brokerage

The options for mortgages available can be very confusing for most mortgage shoppers. Terms for mortgages vary between variable and fixed rate, 6-month terms to 10 year terms. Taking a variable or floating rate mortgage can have savings. Typically the shorter the term or guarantee of the rate, the lower the rate will be. This does not always happen, depending on the market place and the economy, but history has shown that short-term rates tend to be lower than long-term rates. The up side of variable rate is the strong potential for interest rate savings. The down side is the fact that you are accepting the interest rate risk without a guarantee. If you are considering a variable rate mortgage you need to look at your own risk tolerance, and your cash flow available to deal with potential increased payment. Considering projections of rates and where we see interest rates heading can also be important in this decision. Make sure you talk to an expert when you are making this decision


email me for more info jerri@johnsonassociates.ca

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Jerri-ellen Fraser

Sales Representative with the
Johnson Associates Team

Johnson Associates Ltd., Brokerage
247 Guelph St., Georgetown ON L7G 4A8

Office: 905.877.5165
Cell: 647.220.5958

Fax: 905.873.2822

Email: jerri@johnsonassociates.ca

Comments (1)

Ryan Stangl
PrimeSource Funding - Mankato, MN

The perfect storm? Feds MBS purchase program ends 3/31/10, HBTC ends 4/30/10 and HVCC for FHA?

Feb 19, 2010 05:26 AM