Fixed Rates -
Jumbo Rates
- Adjustable Rates
- Interest Only
! Take Advantage Of This Week’s Rates !
Rates are effective July 14, 2008
and are subject to
change without notice.
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With
fixed rate mortgages,
the borrower can lock into a fixed
repayment cost each month over an
agreed period of time and know that,
irrespective of changing rates of
interest, monthly payments will not
be affected. Most lenders charge an
arrangement fee for the privilege of
receiving a fixed rate. Many refer
to this fee as a 'booking fee'. The
fixed rate borrower can rest in the
knowledge that his monthly mortgage
repayment will not change for the
agreed fixed period. |
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The longer the fixed rate period, the higher will be
the fixed interest rate. Fixed periods of one to
five years are the most popular and most readily
available, although fixed rates that last for ten
years up to twenty five years are often available.
At the end of the fixed rate term, the interest rate
usually reverts to the lender's prevailing variable
mortgage rate. Fixed rate mortgages are usually
subject to early redemption penalty charges if the
borrower withdraws from the mortgage early, and can
continue for a period after the initial fixed rate
period has ended.
The disadvantage of a Fixed Rate Mortgage is that if
interest rates drop you will be tied into your set
higher rate - until the end of the agreement. So you
won’t see any decrease in your monthly repayments.
At the end of the term borrowers will typically be
converted to the Standard Variable Rate.
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Adjustable rate mortgages
have been available for many years. As the name
suggests, the monthly repayment goes up and down in
line with the lender's mortgage rate. This means
that the borrower cannot predict the monthly cost of
the mortgage from one year to the next. This can
cause major budgeting problems in a period of
increasing interest rates. On the other hand, when
interest rates fall, there is less to pay. Many
lenders do not alter the rate for existing borrowers
until the year-end. With interest rates used as a
regulator for the economy, mortgage interest rate
change frequently. |
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A mortgage is
interest only
if
the monthly mortgage payment does not include any
repayment of principal for some period. The payment
consists of interest only. During that period, the
loan balance remains unchanged. The interest only
loans of today are interest only for a specified
period, such as 5 years. At the end of that period,
the payment is raised to the fully amortizing level.
In such case, the new payment will be larger than it
would have been if it had been fully amortizing at
the outset |
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Check this
site often as our rates are updated weekly!
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Lot
Loans:
85% LTV 7.500 20/5
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