Best Mortgage Rates 10-Year Fixed – Compare Today – s Current 10-Year Fixed Rates, 10


10-Year Fixed Mortgage Rates

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Historical 10-Year Fixed Mortgage Rates From 2006 – Today

10-year fixed mortgage rate defined

A 10-year fixed mortgage will have a constant rate of interest over a term of 10 years. The term is not the same as the amortization period the amount of time it takes to pay off your mortgage – but, rather, is the period you are committed to the contractual provisions and mortgage rate with your lender. Your monthly mortgage payments will be fixed, and you are protected against interest rate fluctuations.

Comparing 10-year fixed mortgage rates

A 10-year fixed mortgage is the most risk-averse mortgage selection. If you need to budget long-term or believe interest rates will rise dramatically over the coming years, it may make sense. For instance, if you feel certain in five years mortgage rates will be higher than the current quoted 10-year rate, locking in for the long-term is a sound strategy. Your monthly mortgage payments will remain constant over a period of 10 years, and you are protected against interest rate fluctuations.

10-Year Fixed vs. Short Term Mortgage Rates From 2006 – Today

However, it is very difficult to forecast the direction interest rates will take over such a long period of time, and there are a number of drawbacks to locking into a mortgage rate for 10 years. The foremost argument against a 10-year term is the premium you will pay for passing on the risk of interest rate fluctuations for 10 years. You should note that your lender takes on more risk the longer your term is, so as the term gets longer the premiums get higher, but in some situations this may be a premium worth paying. One thing to keep in mind is that, after 5 years, the Interest Act states the penalty to break your mortgage cannot exceed 3 months’ interest, so you wouldn’t need to worry about a potentially much higher Interest Rate Differential (IRD) penalty. However, if the mortgage is broken before 5 years, such a penalty could apply.

Popularity of 10-year fixed mortgage rates

With only 7% of Canadians having mortgage terms between six and 10 years, long terms are not a popular choice in Canada. They are even less popular amongst younger age groups at only 3% uptake in ages 18-34.

Fixed mortgage rates, however, are most common, at 66% of all mortgages in Canada with little variation amongst age groups.


15-Year VA Fixed Conforming Mortgage, Home and Mortgage Center, 15 year fixed mortgage rates.#15 #year


15-Year VA Fixed Rate Mortgages

Take rising rates out of the equation with this predictable, monthly payment plan.

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

OUR GREAT RATES

This payment example assumes a loan with pointsthat is intended to be used to purchase a property with a loan amount of $ and an estimated property value of . The property is located in Alexandria, VA and is within Fairfax county. The property is an existing single family home and will be used as a primary residence. The rate lock period is 60 days and the assumed credit score is .

At a interest rate, the APR for this loan type is . The monthly payment schedule would be:

  • payments of $ at an interest rate of
  • payment of $ at an interest rate of

If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner’s insurance premiums.

FEATURES BENEFITS

  • Predictable payments
  • Faster payoff
  • Free 60 day rate lock
  • Low down payment

• For home purchases or refinancing

• VA’s 2017 Loan Limits are the same as the Federal Housing Finance Agency’s limits – 2017 Loan Limits (Effective January 1, 2017). Learn More

• Offers not available on investment properties

Applicant is responsible for VA funding fee.

VA Mortgages: The maximum loan amount for a VA loan is the VA County Loan Limits. Can exceed VA County Limits to finance the funding fee on purchases only. Amount of loan will also be determined on available entitlement.

Funds must be used to purchase or refinance a property that will be the primary residence. Refinances of existing VA-guaranteed for purposes of lower interest rate also allowed (is not required to be primary residence).

For purchase applications, please submit a copy of your fully signed ratified purchase agreement to [email protected] in a timely manner to ensure PenFed can meet your closing date.

The applicant is responsible for the following fees and costs at the time of closing: Origination fee, appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment, other cost may be included due to program specific circumstances. This is not intended to be an all-inclusive list.

Escrows may be waived if LTV is 80% or less in all states.

If you withdraw an application that was locked and reapply within 30 days, the new application is subject to worst case pricing.

All rates and offers are in effect as of , offered for a limited time and subject to change without notice. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions may apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. To receive any advertised product you must become a member of PenFed by opening a share (savings) account. Federally insured by the NCUA.

We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

ARM vs Fixed Rate Mortgages: Which One Should You Choose?

15 year fixed mortgage rates

With mortgage interest rates at an all-time low you’re probably thinking about finally taking the big leap and becoming a homeowner or refinancing your existing home to a lower interest rate. However, the age-old question looms in front of you…which mortgage should I choose, an ARM or a fixed-rate mortgage?

The answer: it depends on your needs. While there are pros and cons to both mortgages, the real question is not which mortgage is better, but which mortgage will suit my needs.

Let’s take a look at both an ARM and fixed-rate mortgage and then you can decide which option is going to afford you your dream home or that tantalizing interest rate that will have you running to refinance your home.

Adjustable-Rate Mortgages

Adjustable-rate mortgages or ARMs have interest rates that adjust over a period of time. ARMs have had a notoriously bad reputation because of the mortgage meltdown and subsequent recession.

While this reputation was justified in the past, most of those exotic ARMs no longer exist. Today, financial institutions offer hybrid ARMs—like PenFed’s 5/5 ARM, which has a fixed-rate for five years and then the rate adjusts once every five years. This is a unique mortgage product as most ARMs adjust annually after the initial fixed terms.

The thought of an adjustable interest rate probably has you fearing skyrocketing monthly mortgage payments. Fear not, all ARMs have caps—a limit on the amount the interest rate can adjust—and ceilings—the highest the interest rate is allowed to become during the life of the loan. Using PenFed’s 5/5 ARM as an example, the initial interest rate will change every five years by no more than two percentage points up or down (the cap). This rate will never exceed five percentage points above the initial rate (the ceiling).

Fixed-Rate Mortgages

A fixed-rate mortgage provides a reliable and fixed monthly payment for the life of the loan. Because your total mortgage payment remains stable from month to month, homeowners can easily budget their monthly expenses.

Financial institutions offer various fixed-rate mortgages including the more common fixed-rate mortgages: 15, 20, and 30-year. Out of the three the 30-year fixed is the most popular mortgage because it usually offers the lowest monthly payment. However, the lower monthly payment comes at a cost of paying more in interest over the life of the loan.

Some Considerations

So, now that you know a little more about ARMs and fixed-rate mortgages here are a few things you should consider when making a decision about which mortgage will best suit your needs:

  • How long do you plan to stay in your home? If you don’t plan to stay in your home for the long haul, you may want to consider an ARM, which has a lower interest rate than the 30-year fixed and you save big money in interest charges. If you move or refinance within five years before the interest rate adjusts you can avoid a payment hike. Conversely, if you’ve found or are already in the home of your dreams, a fixed-rate mortgage makes more sense and will provide you stable payments for years to come.
  • What can you afford? Knowing how much you can afford to pay month to month in mortgage payments will also help you decide between an ARM or fixed-rate mortgage. If you’re working within a tight budget, the ARM may be a more attractive option since the payments will be lower than a 30-year fixed. But, unless you anticipate a raise or another source of added income, ask yourself if you’ll be able to afford your mortgage payment when the ARM’s interest rate increases. If not, don’t take the risk. Go with the fixed-rate mortgage and get stable monthly payments.

The Takeaway: When it’s all said and done, the goal is to get you into the home of your dreams or refinance your existing home without breaking your pockets. Both the ARM and fixed-rate mortgage are products that will help you reach your goal. However, the path you take to get to your goal depends on which mortgage will suit your needs.

15 year fixed mortgage rates

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Best Ontario Mortgage Rates 5-Year Fixed – Compare Today – s Current Ontario 5-Year Fixed


5-Year Fixed Mortgage Rates

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Historical 5-Year Fixed Mortgage Rates From 1973 – Today

5-year fixed mortgage rate defined

The ‘5’ in a 5-year mortgage rate represents the term of the mortgage, not to be confused with the amortization period. The term is the length of time you lock in the current mortgage rate, while the amortization period is the amount of time it will take you to pay off your mortgage. The term acts like a reset button on your mortgage, at which point you must renew the mortgage at a rate available at the end of the term. So, for example, a typical mortgage has a 5-year term and a 25-year amortization period.

When the mortgage rate is ‘fixed’ it means that the rate (%) is set for the duration of the term, whereas with a variable mortgage rate, the rate fluctuates with the market interest rate, known as the ‘prime rate’. So, for example, if the 5-year fixed mortgage rate is 4%, then you will pay 4% interest throughout the term of the mortgage.

An interesting feature of the 5-year fixed mortgage rate is that all borrowers must meet its standards of approval even if they choose a mortgage with a lower interest rate and shorter term. This benchmark is applied not only to reduce risk for the lender, but to give the borrower some breathing room.

Popularity of 5-year fixed mortgage rates

A 5-year mortgage term, at 66% of all mortgages, is by far the most common duration. It sits right in the middle of available mortgage term lengths, between one and 10 years, and, thus, its popularity reflects a risk-neutral average.

A further breakdown of mortgage terms shows that an additional 8% of mortgages have terms exceeding five years, while 26% of mortgages have shorter terms, including 6% with one year or less and 20% with terms from one year to less than four years.

Fixed rates are also most common, representing 66% of total mortgages as well. In terms of age dispersion, fixed rate mortgages are slightly more common for the youngest age groups, and older age groups are more likely to choose variable rate mortgages.


Fixed-rate mortgages, Barclays, fixed rate mortgages.#Fixed #rate #mortgages


Fixed-rate mortgages

Fix your rate to plan your monthly budget

Want to know exactly what your mortgage payments will be each month? Our fixed-rate mortgage could be the right choice for you.

Your home may be repossessed if you do not keep up repayments on your mortgage.

What’s a fixed-rate mortgage?

Know what you’ll pay each month

You pay a fixed rate for a set time, and that means your mortgage payments won’t change until that period ends and you move to our standard variable rate.

Choose the fixed period you need

You’ll be protected if rates rise – but if they fall, you could pay more than you need to. So choose the fixed term that suits you, which could be 2, 3, 5 or even 10 years.

You could make overpayments

You could pay more than your agreed monthly payment 1 – we’ll tell you if there are any overpayment limits or early repayment charges before you take out any specific mortgage.

How much could you borrow?

Try our mortgage calculator

Use our mortgage calculators to see how much you could borrow, what a mortgage could cost you each month and the total you may pay overall.

How to apply

Once you’ve worked out how much you could borrow, get an Agreement in Principle (AiP) to find out whether we’d be able to lend the amount you need – without affecting your credit score. If we can, the next step is to make an appointment with one of our mortgage advisers to choose the mortgage you want to apply for.

Fixed rate mortgages

Agreement in Principle for a mortgage

Take the first step to your mortgage with an AiP

Start an Agreement in Principle (AiP) to find out quickly if you could borrow the amount you need – without affecting your credit score.

Fixed rate mortgages

Your mortgage appointment

How to prepare for your discussion

Find out which documents you’ll need, get a preview of what we’ll discuss with you and discover what happens after your appointment.

Our current rates

This table shows what the initial interest rate will be, as well as the follow-on rate, the amount you can borrow and any application and early repayment charges. You can sort any of the columns by selecting the column title.

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More ways to buy your home

Fixed rate mortgages

Offset mortgages

Put your savings to work with an offset mortgage

Linking your savings accounts to an offset mortgage could make your money work harder by reducing the mortgage balance you pay interest on.

Fixed rate mortgages

Tracker mortgages

A flexible mortgage that follows the market

If you want a mortgage that reflects the market but doesn’t tie you down to a rate, our tracker mortgages may be what you need.

Fixed rate mortgages

Family Springboard Mortgage

Buy your home without a borrower deposit

Buy a home without a borrower deposit if your family or loved ones can provide 10% of the property’s price as security.

Important information

Your mortgage offer and terms and conditions will explain your overpayment allowance and confirm whether you’d need to pay an early repayment charge.

To maintain a quality service, we may monitor or record phone calls. Call charges

Barclays Bank PLC. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 122702). Barclays Bank PLC adheres to The Standards of Lending Practice which is monitored and enforced by The Lending Standards Board. Further details can be found at www.lendingstandardsboard.org.uk. Barclays Insurance Services Company Limited is authorised and regulated by the Financial Conduct Authority (Financial Services Register number: 312078).

Barclays Bank PLC. Registered in England. Registered no. 1026167. Barclays Insurance Services Company Limited. Registered in England. Registered no. 973765. Registered office for both: 1 Churchill Place, London E14 5HP. ‘The Woolwich’ and ‘Woolwich’ are trademarks and trading names of Barclays Bank PLC. Barclays Business is a trading name of Barclays Bank PLC.

Fixed rate mortgages

Fixed rate mortgages

Fixed rate mortgages


30-Year VA Fixed Conforming Mortgage, Home and Mortgage Center, 30 year fixed mortgage rates.#30 #year


30 Year VA Fixed Rate Mortgages

You’ve served us. Now, we want to help you get ahead with this secure, predictable mortgage.

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

OUR GREAT RATES

The following payment example assumes a loan with points and that the purpose of the loan is to purchase a property, with a loan amount of $ and an estimated property value of . The property is located in Alexandria, VA and is within Fairfax county. The property is an existing single family home and will be used as a primary residence. The rate lock period is 60 days and the assumed credit score is .

At a interest rate, the APR for this loan type is . The monthly payment schedule would be:

  • payments of $ at an interest rate of
  • payments of $ at an interest rate of

If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner’s insurance premiums.

FEATURES BENEFITS

  • Predictable payments
  • Free 60 day rate lock
  • Low down payment

• For home purchases or refinancing

• VA’s 2017 Loan Limits are the same as the Federal Housing Finance Agency’s limits – 2017 Loan Limits (Effective January 1, 2017). Learn More

• Offers not available on investment properties

Applicant is responsible for VA funding fee.

VA Mortgages: The maximum loan amount for a VA loan is the VA County Loan Limits. Can exceed VA County Limits to finance the funding fee on purchases only. Amount of loan will also be determined on available entitlement.

Funds must be used to purchase or refinance a property that will be the primary residence. Refinances of existing VA-guaranteed for purposes of lower interest rate also allowed (is not required to be primary residence).

For purchase applications, please submit a copy of your fully signed ratified purchase agreement to [email protected] in a timely manner to ensure PenFed can meet your closing date.

The applicant is responsible for the following fees and costs at the time of closing: Origination fee, if any, appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment, other cost may be included due to program specific circumstances. This is not intended to be an all-inclusive list.

Escrows may be waived if LTV is 80% or less in all states.

Additional reserve requirements may apply.

If you withdraw an application that was locked and reapply within 30 days, the new application is subject to worst case pricing.

All rates and offers are in effect as of , offered for a limited time and subject to change without notice. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions may apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. To receive any advertised product you must become a member of PenFed by opening a share (savings) account. Federally insured by the NCUA.

We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.


Fixed Rate Loan, BECU, fixed rate loan.#Fixed #rate #loan


fixed-rate home loans

APR Effective 11/16/2017*
Refinance Only – 12 Year No Fee

30 Year Fixed Refinance

Fixed-rate mortgages are the most traditional loans, and are a great choice if you plan to be in your home for a number of years. Your payments won’t fluctuate unless your taxes and insurance rates change, and your interest rate is locked in for the duration of your loan.

BECU is excited to announce yet another way we can save our members’ money: NO origination fee on conventional fixed-rate or adjustable-rate mortgage home loans for purchase and refinance transactions**. No origination fee significantly reduces closing costs. And reducing cost is just one more way BECU can help members combat the skyrocketing prices in today’s real estate market.

  • You expect your income to remain the same in the coming years
  • You don’t plan on moving for the foreseeable future
  • You want the security of fixed rates and payments that will only change if taxes and insurance change

becu mortgage center

Check rates, research loan options and apply or log in to your existing home loan application.

Visit the Mortgage Center

Fixed-rate loans are available for 10, 12, 15, 20, or 30-year terms. What’s the best length for your situation? Here are some things to think about:

  • Total interest you want to pay over the term. The total cost of interest on a 30-year loan is higher than the interest cost of a shorter loan. With a 30-year loan, you have lower monthly payments, but a higher rate; with a 15-year loan, you would have higher monthly payments, but with a lower rate.
  • Your ability to make a higher monthly payment. With a shorter term you pay the loan off faster, but you need to be able to afford higher payments. A 15-year term will also save you thousands in interest over a 30-year loan.

Need the lower payments of a 30-year loan, but still want to decrease interest payments? Just pay a little extra each month toward the loan principal if you can.

Now let’s take a look at your options:

30-Year Fixed

You plan on staying in the home long-term

Fixed rate of interest

You end up paying more in interest charges over the life of the loan

You think interest rates will increase

Level principal and interest payments for the full term of the loan

Benefits of the fixed rate are not realized until after the 10th year

You don’t expect your income to increase significantly over the coming years

No risk that changing market conditions will increase your monthly payments

You need to qualify for the largest loan possible

30-Year fixed high-balance loan

For loan amounts from $424,001 to $729,750 for one-unit properties, $533,851 to $934,200 for two-unit properties, depending upon location of property

Fixed rate of interest

Requires a minimum Representative Credit Score of 680

Only available for properties in California, Pennsylvania, and Washington

Level principal and interest payments for the full term of the loan

Only available for properties in California, Pennsylvania, and Washington

You plan on staying in the home long-term

No risk that changing market conditions will increase your monthly payments

Maximum loan amount determined by location of subject property

You think interest rates will increase

You end up paying more in interest charges over the life of the loan

You don’t expect your income to increase significantly over the coming years

Benefits of the fixed rate are not realized until after the 10th year (10/1 ARM is a better option if loan is paid-off within 10 years)

You need to qualify for the largest loan possible

20-Year Fixed

You want to own your home more quickly

Reduces the mortgage term by 1/3

Your monthly payment will be significantly higher than with a 30-year mortgage

You want to retire debt free

Save significant amount of money in interest payments

You’ll be retiring in less than 25 years

You want to stay in your home once you retire

15-year Fixed

You want to own your home more quickly

Cuts the length of your mortgage in half

Your monthly payment will be significantly higher than with a 30-year mortgage

You want to retire debt-free

Save significant amount of money in interest payments

You’ll be retiring in less than 30 years

You want to stay in your home once you retire

10-Year Fixed

You want to own your home more quickly

Cut mortgage length by as much as 2/3

Your monthly payment will be significantly higher than with a 30-year mortgage

You want to retire debt free

Save significant amount of money in interest payments

You’ll be retiring in less than 30 years

You want to stay in your home once you retire

No Fee 12-Year Fixed

Refinance amounts up to $424,000 or less

Have equity in property and can afford accelerated payments

Maximum loan amount is $417,000

1-unit properties only

Look to position yourselves financially before retirement

1-unit properties only

Low loan-to-value (LTV)

Significant amount of savings in interest paid payments

No Investment Manufactured Homes

Don’t want to pay points or closing costs

FICO (credit score) limitations

Significantly larger payments

homeready mortgage – 30 Year Fixed*

Need more information?

Just stop by your Neighborhood Financial Center, and we can answer your questions and help you find the loan that’s right for you.

Financial Guidance

Buying Your 1st Home

Financial Guidance

Building Credit

*Income limits may apply. Homeownership education at a cost of $75 (paid to Framework) required. HomeReady is a trademark of Fannie Mae. Loans are subject to credit approval and other underwriting criteria. Certain restrictions apply. Home Loan programs, terms and conditions subject to change without notice.

**Offer effective with applications dated 1/1/2017, expiring 12/31/2017, and applies to purchase and refinance transactions. The no-fee promotion does not currently apply to government (FHA, VA) loans. Loans are subject to credit approval and other underwriting criteria, and not everybody will qualify. Certain restrictions apply. Home loan programs, terms and conditions are subject to change without notification. BECU reserves the right to continue this offer indefinitely.

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Fixed rate loan Equal Housing Opportunity Lender


Best Current Fixed 20-Year Mortgage Rates 20YR FRM Refinance Rates: Compary Today s Twenty Year


Today’s Twenty Year Mortgage Rates

The continually changing mortgage market often creates a confusing spectrum of choices for borrowers. By acquiring a general understanding of the types of mortgage products available and the advantages found in each, the consumer gains the ability to choose the best option. The 20 year fixed mortgage is available from a wide variety of financial institutions, though it is not marketed anywhere near as aggressively as 30-year fixed-rate mortgages.. The 20-year loan option provides distinct advantages over other products.

As with other fixed term loans, the interest rates on this plan will remain constant for the life of the loan. Once a payment amount is established and the loan granted, the borrower is assured that each monthly payment is identical for 20 years. On longer term loans such as a 20 year and 30 year fixed, payments during the first few years go primarily toward paying the interest. Very little of the principle is actually paid until later in the term. In many cases, additional payments early in the loan period may be applied to the principle or the entire loan may be prepaid before the end of the loan period.

The normal rule when comparing mortgage plans is that a longer term loan will typically have a higher interest rate than a shorter term. For example, a 30 year fixed loan may be available at 4%, a 20 year at 3.75%, a 15 year at 3.50% and a 10 year at 3.25%. These rates continually fluctuate but they often follow this pattern. The reason for this is that with a longer term loan the lender has the ability to collect more revenue over time, but in guaranteeing the loan for a longer period of time the lender is taking a greater interest rate shift risk. If interest rates fall the homeowner can refinance into a lower cost loan. If inflation picks up and broader financial market rates rise, the lender is stuck with the same rate they got when the loan was originated.

A borrower may save thousands of dollars in the long run by choosing a shorter term loan. The disadvantage to the borrower, however, is that the monthly payments are higher and qualifying may be more difficult. A 20 year fixed mortgage may be a good compromise for borrowers who desire a lower monthly payment than a 15 year loan offers but want the flexibility of completing the payments in a shorter time than the 30 year plans. Equity buildup from a 20 year fixed mortgage rises faster than a 30 year loan.

Fixed vs Adjustable

When interest rates are relatively low most consumers opt for the certainty of fixed-rate mortgages (FRMs). When interest rates are relatively high people are more inclined to opt for adjustable-rate mortgages which have a lower introductory rate.

Other financing options for home or real property loans include adjustable rate loans. In this case, the borrower assumes the risk of a higher payment at some point depending on market conditions. Homebuyers who do not plan to stay in the home for a long period or plan to pay off a loan quickly may decide to take the risk of an adjustable rate mortgage. Most ARM loans are hybrid ARMs, which offer a fixed initial rate for the first 3 to 7 years then after the introductory period the rate regularly adjusts every 6-months to year based upon a reference rate like the London Interbank Offered Rate (LIBOR) or the 11th district Cost of Funds Index (COFI).

Most homeowners across the United States tend to either move or refinance their home about once every 5 to 7 years. Those who are likely to move in a short period of time may want to opt for the lower adjustable-rate, whereas those who are certain of their job stability and want to settle down for life may want to lock in low loan rates on their home. Buyers who need to have a secure certain payment schedule, however, will select a fixed mortgage plan.

Several important features to remember about a 20 year fixed mortgage:

  • Payments are consistent for the entire 20 year term.
  • Interest rates typically lie between a 15 yr. and 30 yr. loan.
  • Payments to the principle increase more rapidly than a longer term loan.

When to Apply

10 year fixed mortgage ratesAlthough rates fluctuate to some degree on a weekly basis, watching general trends and economic conditions allows consumers to make the right choice for financing. Selecting a fixed term loan over a variable interest rate mortgage may depend on forecasting how interest rates are expected to change. For example, during inflationary periods when interest rates jump quickly and may be unpredictable, variable rate loans could create a financial hardship for some borrowers. They may find that the lender increased the mortgage payment because the prime rate jumped. The mortgage payment may continue to rise at the discretion of the financial institution. However, variable loans may be attractive with low starting rates enabling first time homebuyers to get into a starter home. If the loan applicant realizes the risks and has plans to either refinance, move or pay off the loan before an increase they may be a valid choice.

In contrast, those borrowers holding a fixed rate are protected from an increase during economic inflation. When interest rates are at a current low trend and forecasted to increase, securing a fixed mortgage becomes an attractive option. The disadvantage is that it may be more difficult to qualify for a 20 year fixed loan than a longer term such as a 30 year fixed because of higher payments and more stringent requirements. This type of loan is a good fit for borrowers who desire low risk and can comfortably meet the qualifications.

The most ideal time to finance is obviously when the rates are lowest; however other factors such as new home purchases, refinancing due to change of job or other lifestyle upsets may make the decision immediate. Borrowers interested in refinancing hold the best possibilities of ideal timing for a new loan. If the homeowner already has accrued some equity in the property, a refinance could lower the monthly payment significantly if the interest rates have dropped since the initial sale. Although additional fees are involved in refinancing, the advantage of a shorter term loan such as a 20 year fixed over a variable or longer term may offset those costs.

Loan Costs and Fees

10 year fixed mortgage ratesEstimate your payments with this free calculator, or compare loans side by side. 10 year fixed mortgage rates

Every mortgage includes some upfront closing costs for processing and to pay the expenses of writing the loan policy. When moneys are fluid, for example during an economic upturn where financial institutions have abundant resources, some loans may be advertised as free to the borrower. These loans may seem attractive to the borrower but often come at a higher interest rate than other mortgage plans. One way or another you still end up covering the bank’s costs profit margin. Typically a new loan will include a series of fees including points which are 1% of the loan amount and paid at the time of funding to secure a lower interest rate. Some lenders allow points to be amortized over the life of the loan.

The cost of obtaining a mortgage varies due to differences in financial institutions, unique regions such as states in the U.S., the amount of the loan and several other factors. The borrower’s credit history will often have a significant impact on the cost of the loan and the interest rate being offered. Larger loans such as jumbo loans often carry higher initial fees. A large down payment may reduce the mortgage cost in some cases. Refinancing costs may be slightly less than for an original loan if the same lender is used and agrees to a reduction in their fees, particularly if the borrower has maintained a good credit rating.

Fees to be considered when financing a 20 year fixed mortgage:

  • Credit rating report fees: Loans are only granted after a thorough credit report has been issued and the cost of obtaining these reports is passed on to the borrower.
  • Title search: Most areas require a full title search to be completed before the deed is issued even in a refinancing situation.
  • Loan origination fee: These charges cover the costs of loan processing and administration.
  • Prepaid interest: The borrower often needs to set aside extra cash to pay for the gap between the time the loan is granted and the first payment due date.
  • Property Mortgage Insurance – PMI is an insurance policy which protects the lender in case of default. Home buyers who put less than 20% down on their home are typically required to pay PMI until the loan to value (LTV) falls below 80%.

Fees for financing a new mortgage will vary between lenders and often depend on the current economic conditions. An advantage of securing a 20 year fixed mortgage versus shorter term loans or variable plans is that the costs may be amortized over a longer period making this loan the most practical and affordable option.


Best Variable – Fixed Mortgage Rates Toronto, Home Mortgage, Northwood Mortgage, fixed mortgage rates.#Fixed #mortgage


Our Best Home Mortgage Rates Toronto – Fixed Variable

Our lowest mortgage rates change frequently as we often receive short-term rate promotions daily. These promotions are never posted online. Meet with one of our Mortgage Agents to get the best mortgage solution for you!

Specials

  • 10 Year Fixed Rate Special 3.94% Your last mortgage ever
  • 5 Year Variable rate mortgage Insured at Prime .95% (2.25%)
  • Open line of Credit at Prime + .50% (3.70) some conditions apply

Many of our rates can be guaranteed for up to 4 months! This means if you secure a mortgage in April, the rate is guaranteed until August

If you are buying a home (in Canada) now, or switching from a current lender, you can secure these rates NOW by contacting us today.

Rates subject to change without notice and OAC Some Conditions Apply

Mortgage Rates

When mortgage rates change, it can happen quite quickly. So when it comes to mortgage, timing is everything. Be sure to secure your loan while rates are favourable in order to get the best deal possible. Also, if you are looking to buy a home or you are thinking about changing from your current lender, you ll want to do your research before you make any final decisions.

Remember, all mortgages aren t created equal, so it s important to compare mortgage rates and to go with a company that you trust. The terms and conditions of mortgages vary, as do the interest rates. A mortgage should be set up to fit your needs as much as possible. We want to equip you with the knowledge you need to make the best decision.

What is an open mortgage?

An open-term mortgage is an appealing option to those who plan on paying off their mortgage sooner rather than later. This type of mortgage can be repaid fully or partially at anytime without prepayment interest fees. If you want to convert them to another term, you are able to do so at anytime again without prepayment interest fees. The interest rates for open mortgages tend to be higher than those of closed mortgages because they have such flexibility.

What is a closed mortgage?

A closed-term mortgage is the common choice for people who aren t planning to pay off their mortgage in the near future. The interest rates for closed term mortgages tend to be lower than that of open mortgages. With closed term mortgages, you re able to save on interest costs and hopefully this will help you to pay your mortgage back quicker. Fixed or variable options are available for closed term mortgages but there s a restriction on the principal amount that you can pay towards our mortgage each year.

If you want to renegotiate your rate, you will need to pay a prepayment charge. In addition, you will need to pay this prepayment charge, if you want to pay off the balance of your mortgage before the end of the term or if you want to prepay more money than your mortgage will allow you to.

Prepayment Charges

With prepayment charges you have the flexibility to increase your monthly payments or to pay the whole thing off. Contact our team of experts to find out more about prepayment options.

Comparison: Variable vs. Fixed Mortgage Rates

Fixed Mortgage Rates

More than 50% of Canadians have fixed mortgage rates, which means the monthly payment stays the same over the full term. You are protected against fluctuating interest rates, so it can set up and you don t have to worry about it. If you want stability this is the best option for you.

Variable Mortgage Rates

With a variable mortgage, your rates are typically lower but they will vary over the term. Your payments will be based on market behaviour and this will have an affect on how much you are paying. The amount that you are paying will change over time.

What We Offer:

At Northwood Mortgage, our dedicated and knowledgeable staff are able to provide you with our best mortgage rates.

Call us today at 1-888-492-3690 for more details.


The 15 vs, 15 year fixed mortgage rates.#15 #year #fixed #mortgage #rates


The 15 vs. 30 Year Mortgage Debate: Why a 30-Year Loan Is Better

15 year fixed mortgage ratesAccording to Freddie Mac s most recent survey, there is currently a spread of 0.72% between the 15- and 30-year fixed rate mortgage benchmarks.

I think most people naturally assume that, when it comes to choosing between a 15- or 30-year fixed rate mortgage, the 15-year loan is usually the better option anyway. Considering the current spread, I m sure a lot of folks out there think they d be absolutely crazy to take out a 30-year loan.

All things being equal, a 15-year mortgage allows you to pay off your mortgage twice as fast while saving a significant chunk of money on interest. However,I say the 30-year mortgage is a more logical choice because it offers so many more advantages over its shorter-termed cousin.

Here are several big reasons why I think a 30-year fixed rate mortgage is the more pragmatic choice:

Lower payments. Of course, the biggest advantage of the 30-year mortgage is that it comes with lower payments; the money you save can then be invested or used as you see fit.

More budget friendly. Those lower payments not only take the strain off tight budgets but, if need be, they also allow you to stretch your dollar enough to purchase a more expensive home.

Increased flexibility. About eight years ago, with potential layoffs looming, I refinanced from a 15-year to a 30-year mortgage in order to lower my monthly payments by over 40%. Today, the threat of layoffs are still looming but I sleep a lot better knowing that my mortgage payment is only $600 per month instead of $1000.

More control. With a 30-year mortgage you re almost always free to make additional principal payments necessary to pay off your loan in 15 years without penalty. However, you re never obligated to do so, and can always change your mind as life s circumstances dictate. With the 15-year loan, you re hopelessly committed to giving that extra money to your lender each month whether you can really afford to or not.

Reduced financial vulnerability. By paying your lender that additional principal every month, you may be locking up too much money into your house. While it s true that the shorter loan builds home equity faster, you still need a lender s permission to tap into it with a home equity loan. If you lost your job, it s highly unlikely your bank would agree to give you such a loan, making that equity unavailable when you most needed it.

More opportunity for financial balance. Yes, building home equity and getting that house paid off is a noble goal. However, for young people just starting out, there are often other very important financial obligations that need to be addressed too. The higher payment that comes with a 15-year mortgage makes little sense if it leaves you unable to build an emergency savings account, or contribute anything to your 401(k) plan, IRA, and perhaps your kids college funds.

Bigger tax deductions. I can already feel the nasty emails coming my way: Agreeing to pay more interest in exchange for a bigger tax deduction is like spending a dollar to save a dime! I get it; this should never be the only reason for taking a 30-year mortgage over a 15-year mortgage. However, all things being equal, the larger tax deduction for the 30-year loan does temper the interest savings of a 15-year loan if only a little bit.

Effective inflation hedge. Inflation erodes the value of the dollar over time. As a result, payments made during the last 15 years of a 30-year loan are significantly lower in real terms than the day you first get the loan. That s why banks hate sustained periods of high inflation: folks with longer-term fixed-rate loans end up repaying those loans with dollars that are worth far less than the value of the dollars they originally borrowed.

No matter how you look at it, the faster inflation rises, the less sense it makes to pay off the mortgage early. With that in mind, a 30-year loan is definitely your best opportunity to stick it to the bank. For many people, I suspect that s probably reason enough to choose one.


30-Year Fixed vs, fixed mortgage.#Fixed #mortgage


30-Year Fixed vs. 5/1 ARM

Fixed mortgage

Here we go again…it’s that special time where I compare two popular loan programs to see how they stack up against each other. Today’s match-up: “30-year fixed vs. 5/1 ARM.”

Everyone has heard of the 30-year fixed-rate mortgage – it’s far and away the most popular type of loan out there. Why? Because it s the easiest to understand, and presents no risk of adjusting during the entire loan term.

But what about the 5/1 ARM? Do you even know what a 5/1 ARM is? What the heck is that slash doing there!? It looks confusing.

Fixed mortgage

Put simply, the 5/1 ARM is an adjustable-rate mortgage with a 30-year term that’s fixed for the first five years and adjustable for the remaining 25 years. That means it s a hybrid ARM. Partially fixed, and partially adjustable.

After the first five years are up, the interest rate can adjust once annually, both up or down. That s the 5/1 broken down for you. Disregard that pesky slash.

It’s a pretty popular ARM product, if not the most popular. And just about all mortgage lenders offer it, including ING, via its Easy Orange Mortgage.

5/1 ARM Rates Are Lower. That s the Draw

Fixed mortgage

Well, the biggest advantage to the 5/1 ARM is the fact that you get a lower mortgage rate than you would if you opted for a traditional 30-year fixed.

As you can see from the chart I created above, the 5/1 ARM is always cheaper than the 30-year fixed. That s the trade-off for that lack of mortgage rate stability.

But how much lower are 5/1 ARM rates? Currently, the spread is 0.63%, with the 30-year averaging 3.78 percent and the 5/1 ARM coming in at 3.15 percent, per Freddie Mac data.

Since Freddie began tracking the five-year ARM back in 2005, the spread has been as small as 0.27% and as large as 1.30% in 2011.

If the spread were only 0.25%, it d be hard to rationalize going with the uncertainty of the ARM. Conversely, if the spread were a full percentage point or higher, it d be pretty tempting to choose the ARM and save money for at least 60 months.

Let s look at an example of the potential savings:

Loan amount: $350,000

30-year fixed monthly payment: $1,626.87

5/1 ARM monthly payment: $1,504.08

So you’d be looking at a difference in monthly mortgage payment of roughly $122, or $1,464 annually ($7,320 over 5 years), using our example from above. Not bad, right?

You d also pay down your mortgage faster because more of each payment would go toward principal as opposed to interest. So you actually benefit twice. You pay less and your mortgage balance is smaller after five years.

After five years, the outstanding balance would be $315,427.87 versus $312,017.26 on the five-year ARM. That s roughly another $3,400 in savings for a total benefit of nearly $11,000.

Discussion over, the ARM wins! Right? Well, there’s just one little problem

It might not always be this good. In fact, you might only save money for the first five years of your 30-year loan.

After those initial five years are up, you could face an interest rate hike, meaning your 5/1 ARM could go from 3.25 percent to 4.50 percent or higher, depending on the associated margin and mortgage index.

ARMs Are Cheap But Will Likely Head Higher

Currently, mortgage indexes are super low, but they’re expected to rise in coming years as the economy gets back on track, which it will eventually.

And you should always prepare for a higher interest rate adjustment if you’ve got an ARM. In fact, lenders typically qualify you at a higher rate to ensure you can make more expensive payments in the future should your ARM adjust higher.

So that’s the big risk with the 5/1 ARM. If you don’t plan to sell or refinance before those first five years are up, the 30-year fixed may be the better choice.

Although, if you sell or refinance within say seven or eight years, the 5/1 ARM could still make sense given the savings realized during the first five years. And most people either sell or refinance within 10 years.

Just be sure you can actually handle a larger monthly mortgage payment should your rate adjust higher. And realize that refinancing won t always be an option you may not qualify, or rates may be too expensive to justify a refi. It s never a guarantee.

If you actually plan to pay off your mortgage, an ARM could be a bad idea unless you seriously luck out with rate adjustments. Or you serially refinance and pay extra to shorten the amortization period. Otherwise, there s a good chance you ll pay a lot more than you would have had you gone with the 30-year fixed.

Why? Because each time you refinance to another ARM, you re getting a brand new 30-year term. That means more interest is paid over a longer period of time, even if the rate is lower.

However, if you’re a savvy investor and have a healthy risk-appetite, the 5/1 ARM could mean some serious savings, especially if the extra money is invested somewhere else with a better return for your money.

Five years not enough for you? Check out the 30-year fixed vs. the 7-year ARM, which provides another two years of interest rate stability. The rate may not be as low, but you ll get a little more time before that first rate adjustment.