Back to: May 2019


Is It Time to Lock Into a Fixed-Rate Mortgage?
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One of the most agonizing decisions homeowners make is whether to go for fixed or variable Mortgage.  The decision could end up costing – or saving – big bucks on what is often the single biggest purchase many will make. Research shows that, in the past, a variable-rate mortgage has been cheaper than a fixed-rate one. But today’s market is different from decades past in two big ways.

The spread between fixed and variable rates is extremely low by historical standards. And we can no longer rely on a long-term downtrend in rates. Given that, the historical advantage of a variable is less applicable today.

Since rates only have one way to move – up – a lot of people are now wondering if they should lock into a fixed rate mortgage. Is it a good idea? Probably, but it depends. Here are four things to consider before locking into a fixed rate mortgage.

What does a Fixed Rate mean? 
The interest rate on a fixed rate mortgage stays the same throughout the life of the loan. Typically, the standard for fixed-rate loans is the 5 years fixed rate loan although you can choose to go as long as 10 years in some cases. You can also find fixed-rate loans with shorter pay-off periods. When loan periods are shorter, you will have higher monthly payments, but slightly lower interest.

When are Fixed Rate Loans better? 
The advantage of the fixed rate mortgage is that the payment is the same each month. This is important especially when interest rates are unpredictable. When interest rates rise, people with adjustable rate mortgages are faced with increasing monthly mortgage payments.

A fixed-rate loan means you will always know how much your home payment will be each month, regardless of what is happening with the economy or current interest rates.

What’s the downside of Fixed Rate Loans?
The disadvantage is that the interest is generally a little higher than an adjustable rate. With a fixed-rate loan, you’ll always pay the same amount of interest. That is great when interest rates are climbing, but if they drop below your interest rate, you will continue paying the higher amount of interest. Of course, you can always refinance a fixed-rate loan in order to get down to the best-fixed rate mortgage but this may not always be an option.

Over the life of your fixed-rate loan, you will pay a substantial amount of interest. In fact, you will probably pay hundreds of thousands of dollars in interest. There are ways to manage your mortgage so that it is an investment that works for you, and you can do this by talking to a mortgage specialist.

Should you have a Fixed Rate Mortgage?
You should discuss your particular situation with a talented mortgage specialist. Generally, you'll find that fixed rate mortgages are the right choice if:

• You think interest rates are low
• You can afford the payment for the house you want
• You need to budget for and predict monthly payments
• You will keep your home for a relatively long period of time

The best-fixed rate mortgage works for you and your lifestyle. If you'd like the peace of mind that comes with a stable interest-rate payment, then a fixed-rate mortgage may be the ideal choice. Borrowers often choose fixed-rate mortgages when interest rates are low and are expected to rise.

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With Compliments of

Michele Vyge-Fraser
Real Estate Agent/ Associate Broker/ CNE®


Red Door Realty
1314 Cathedral Lane
Chapter House
Halifax, Nova Scotia, B3H4S7
T: 902-830-6397
D: 902-830-6397
NovaScotiaRealEstate@gmail.com
www.RedDoorRealty.ca



NATIONAL MORTGAGE RATES
Term Posted
Rates*
Best
Rates*
6 Months 3.34% 3.30%
1 Year 3.59% 3.04%
2 Years 3.74% 2.89%
3 Years 3.89% 2.79%
4 Years 3.95% 2.95%
5 Years 5.34% 2.69%
7 Years 5.80% 2.99%
10 Years 6.10% 3.04%
Variable Rate 2.90%
Prime Rate ** 3.95%
*last updated: Feb 18,2020


https://www.reddoorrealty.ca

388 Robertson Road, Egerton/Merigomish, Pictou County!

Fabulous Ocean Views Property ~ a Must Sea :)

List Price $825,000

Have you been dreaming of Nova Scotia Pictou County Seaside Living less than 2 hours from the Halifax Airport? Imagine warm Northumberland Strait waters, uncrowded sandy beaches, fabulous boating, easy fishing, and a beautiful move-in ready 3-level seaside year-round home or seasonal luxury getaway with almost 360 degrees of gorgeous ocean views, deeded water access, and boat mooring! Located in an established Egerton private community, this property offers 3 great bedrooms, bathrooms on each level, vaulted ceilings great room, a private family room, and office space with excellent internet, gorgeous landscaping and gardens, sunrise, sunset, cocktails, and coffee decks, outdoor private dining gazebo, 2 car detached heated garage with workshop, cedar lined garden shed... all this and more plus the fishing boat, 2 kayaks and ride on lawn mower can be included! Bonus... Melmerby and Big Island Beaches are close by too! This area is truly one of Nova Scotia's best-kept secrets because these opportunities are rare. MLS 202314229

 

27 Kingsmere Court, Timberlea

List Price $599,000

Close to the golfing, skating, cross country skiing and walking trail amenities in Brunello Estates plus St Margaret Bay beaches and boating, this beautiful large home huge fenced in property has been family owned since 1981. And the exceptional location is on a wonderful cul-de-sac in a great Timberlea neighbourhood! Perfect for growing families, this family home is bright and cheerful and includes an eat-in kitchen, separate dining room, large living room, spacious family room, 4 bedrooms, 2 full baths, lots of storage and an attached garage. 27 Kingsmere Court is also perfectly located at the top of the circle. The home and property have been exceptionally well cared for over the years with many recent updates. Pride of ownership, great curb appeal, amazing lifestyle and a happy home. Definitely a must see! Quick closing available. MLS 202323649

Halifax Mortgage Specialist Bruce Lusby 

(902) 210-0515

http://mortgageweb.ca/BruceLusby

Halifax, Nova Scotia - updated Oct 6, 2015

Variable:

5yr @ Prime - .65% (2.05%)

HELOC @ Prime +.25% (2.95%)

Fixed:
1yr 2.29%
2yr 2.09%
3yr 2.24%
4yr 2.54%
5yr 2.54%
6yr 3.39%
7yr 3.44%
10yr 3.84%

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The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice. If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.