03/02/2022
๐๐๐ง๐ค ๐จ๐ ๐๐๐ง๐๐๐ ๐ก๐๐ฌ ๐ข๐ง๐๐ซ๐๐๐ฌ๐๐ ๐ข๐ญ๐ฌ ๐ซ๐๐ญ๐ ๐๐ฒ .๐๐%. ๐๐จ๐ฐ ๐๐จ๐๐ฌ ๐ญ๐ก๐ข๐ฌ ๐๐๐๐๐๐ญ ๐ฒ๐จ๐ฎ?
๐๐ฉ๐ญ๐ข๐จ๐ง ๐: You can lock into a fixed rate. Some of you may feel more comfortable locking into a fixed rate before variable rates start to rise.
๐๐ฉ๐ญ๐ข๐จ๐ง ๐: Use prepayments as a hedge. For those willing to stick with a variable rate during their current terms and potential rate hikes incoming, you can mitigate rising interest costs by paying down your mortgage more quickly or stick with your current variable rate.
*** Here is a brief overview on how to keep your payments as if you were paying a 5 year Fixed Rate mortgage, while taking advantage of the lower variable rate.
I.E. On every $100k in mortgage you have taken, the variable rate payment, assuming the interest rate is 1.65% (Prime - .80%) and a 25 year amortization, is $406.75 per month. Assuming the 5 year fixed rate is at 3.25% and 25 years amortization, the payment would be $486.17. Take advantage of the lower payment and overall interest cost, but try and keep your payment at the $486.17. This will allow you to pay off more principal while the variable rate remains below 3.25%.***
๐๐ก๐จ๐ฎ๐ฅ๐ ๐ฒ๐จ๐ฎ ๐ฌ๐ญ๐ข๐๐ค ๐ญ๐จ ๐ฒ๐จ๐ฎ๐ซ ๐๐ฎ๐ซ๐ซ๐๐ง๐ญ ๐ฏ๐๐ซ๐ข๐๐๐ฅ๐ ๐ซ๐๐ญ๐, ๐ฅ๐จ๐๐ค ๐ข๐ง๐ญ๐จ ๐ ๐๐ข๐ฑ๐๐ ๐ซ๐๐ญ๐ ๐ฆ๐จ๐ซ๐ญ๐ ๐๐ ๐ ๐จ๐ซ ๐ฆ๐๐ญ๐๐ก ๐ฒ๐จ๐ฎ๐ซ ๐ฏ๐๐ซ๐ข๐๐๐ฅ๐ ๐ซ๐๐ญ๐ ๐ฆ๐จ๐ซ๐ญ๐ ๐๐ ๐ ๐ฉ๐๐ฒ๐ฆ๐๐ง๐ญ ๐ญ๐จ ๐ญ๐ก๐ ๐๐ข๐ฑ๐๐ ๐ซ๐๐ญ๐?
Not sure how to proceed? Please reach out to us and we'll be happy to review your situation to help you find a customized mortgage solution suited for your current needs and future plans or with any questions.
Send us a DM or give us a call at 416-899-1467 to find out more! We would be happy to ๐๐๐๐ and get you the appropriate answers! โ
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๐น๐๐๐๐๐ ๐ช๐๐๐๐๐
๐ช๐๐๐๐๐โ๐ ๐ด๐๐๐๐๐๐๐ ๐ป๐๐๐
๐ 416-899-1467
๐ง [email protected]
๐ www.clancysmortgagesolutions.com - link in Bio
