Posts Tagged ‘5 year mortgage’
Mortgage Qualifying Rates Explained
So you are looking for the best mortgage rate possible as well as how much you can afford. You are still undecided between the fixed and variable rate. Your mortgage broker tells you how much of a mortgage you can afford at the variable rate and the fixed rate.....but wait a second.....the amounts are different. Not only that, the variable rate option is a smaller mortgage amount even though the rate is less. How can that be? The answer is quite simple. When a lender qualifies you for a mortgage with a term of 5 years or greater, they use the contract rate to determine the affordability. In other words they use the rate quoted on the commitment. This is not the case for variable mortgages or terms less than 5 years. In these cases they use the MQR (Mortgage Qualifying Rate) rate which is the 5 year posted rate. So even though the quoted rate for a variable might be prime less .70% (currently 2.05%) they qualify you based on 5.49% (the current 5 year posted rate). Why do Banks use different rates to qualify my mortgage? Lenders ...
50/50 Mortgage offers great 5 year mortgage rate
As i have posted many times on this blog, the first question out of most people's mouths when I first start speaking to them about their financing needs is "what's the best five year rate you can get me?" In an industry that is driven by competitive pricing of its product, I can understand where that question comes from. As i ahve also mentioned on this site several times....there is more to a mortgage than just a low rate. Well, in this post I am happy to say I am going to talk about....low rates. In fact I am going to talk about a mortgage rate lower than any other 5 year rates I have seen advertised. I am now offering my clients a 5 year rate of 3.47%. How can I offer a rate that low? Well, notice I didn't say it is a 5 year "fixed" rate. This is a unique product that allows you to take advantage of the low rates of a variable mortgage while maintaining some of the security of a fixed mortgage. It is called a 50/50 mortgage. Basically 50% of the funds are locked in at today's low 5 year fixed rate of 4.29% while ...
