Wednesday, March 11, 2009

Save over $300 per month on a $300k mortgage with Today's mortgage interest rates!

This article talks about the recent lowering of the prime rate and it's effect on interest rates

With the drop of 50 basis points (1/2%)to the prime rate by the Bank of Canada last week, we have seen virtually every lender adapt this change by lowering their prime rates to a new record low of 2.5%. The next BOC rate announcement is set for April 21st, where a cut of another 25 basis points is expected. This will most likely be the final cut, after all, anymore cuts and they would be paying us to take mortgages! Anyone with a 'prime minus' variable rate should have a very large smile on their face :)
As of today, we are starting to see some downward movement on fixed rates. The lowest available 5 year fixed rate now is 4.19% (30 day quick close) and the one year fixed as dropped to 3.25%! Will the fixed rates come down further than this? We will have to wait and see.
The prime rate is then expected to remain relatively stable for the remainder of the year.

With mortgage rates this low, and with the fallen prices of homes, there has never been a better time in history to buy real estate then right now. This is a time that anyone in this business should be excited about. Even if homes were to depreciate another 3% for the year, the amount they end up saving at today's interest rate more than makes up for it!

Last year at this time, the lowest 5 year fixed rate was 5.99%..... a 1.8% difference from the lowest rate today.
Here is an example of how today's interest rates are better: A $300k mortgage at last years rate of 5.99% amortized over 25 years would have a monthly payment of $1,917. The same mortgage at today's rate of 4.19% would have a monthly payment of $1,609..... a difference of $308! Multiply that difference over the 5 year term and you have saved $18,480. That's $18,400 that stays in your pocket as opposed to going into the banks.

Let's look positively upon the financial opportunity in front of us right now. It is there. Let's make it happen!

Today's lowest rates that I can find:

1 year fixed 3.25%
2 year fixed 3.99%
3 year fixed 3.99%
4 year fixed 4.25%
5 year fixed 4.34%
5 year fixed 4.19% (30 day quick close)

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

2 comments:

  1. 5yr fixed @ 3.99% can be gotten now.

    ReplyDelete
  2. Yes, you are correct, lenders just updated their rates, thanks for your comment!
    Mark

    ReplyDelete