Thursday, May 05, 2016

You can save money when comparing the 1 year and 5 year mortgage interest rates

Hello from Fabulous Mississauga!

Interest rates are always on people's minds.

A very interesting relationship is between the 1 year and 5 year mortgage interest rates compared over time. 

People often ask me if they should choose the short term rates or lock in for the long term rates with their mortgage. 

The answer is not simple and often depends upon your personal situation and your risk tolerance, read more about locking in your mortgage for the long or short term

The graph below shows you the difference between the 1 year rate and the 5 year rate. The wider the gap, the more opportunity for you to save money by having a short term mortgage.  This may give you some insight into what you may wish to do by comparing the difference between the short and long term rates over the past decade or so and how the difference fluctuates.

I hope this finds you Happy and Healthy!
All the Best!
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

BUS 905-828-3434
FAX 905-828-2829  CELL 416-520-1577

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