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First Rate
E-Newsletter for April 2008
Dear Home Owner,
If you are a homeowner, potential
homeowner or a real estate investor, you know that your mortgage is
the single largest expense you'll ever have. Keeping abreast
of interest trends, mortgage innovations and credit strategies will
help lower your mortgage costs and possibly build wealth for you and
your family.
I have a unique approach to the mortgage
business and that is, to provide my customers with the most
comprehensive information and options available so they can make the
best mortgage and home buying decision. I don't use any slick
sales techniques or negotiation strategies. It's all about
providing the right information and letting you make the decision-
My job is done when you know your
options.
Events - Home Buyer
Seminars
Be sure to attend our upcoming
home buyer seminars in Vancouver and Richmond.
Click here
to view our list of upcoming seminars.
In this
issue:
- Market commentary & interest
rate trends
- The Top 5 Credit
Misconceptions
- Pre-Approvals: What You Need to
Know
- The Cost of a Cashback
Mortgage
- Mortgage Solutions for Seniors:
Reverse Mortgage vs. HELOC
Market commentary & Interest
rate trends
More rate cuts are expected down
the road. Our view is confirmed by economists from major
financial institutions. TD Economics
is calling for a further 1.5% rate cut in the coming months.
RBC and
CIBC
are predicting smaller rate cuts of 3/4% and 1/2%, respectively,
during the same period. Consequently, we still recommend a variable rate strategy
for our clients.
For those locked-in to a fixed
rate mortgage, does it make sense to switch to a variable rate
mortgage? It could. That's because the gap between the fixed
rate and the variable rate mortgage has widened enough to make this
transaction a viable option. On a $300,000 mortgage locked in
at 5.99% for 5 yrs, switching to a variable rate mortgage could save
as much approx. $10-12,000 in interest over 5 years (after
pre-payment penalties and legal costs are considered).
Rates and Charts
Prime @
5.25% for some lenders (next announcement on Apr 22,
2008)
-
|
Term |
Feb
22
|
Feb
29
|
Mar
7
|
Mar
14
|
Mar
21
|
Mar
28
|
Today |
|
3 year
|
6.05% |
6.05%
|
5.50%
|
5.50% |
5.50% |
5.50% |
5.50% |
|
5
year |
5.89%
|
5.89% |
5.84% |
5.84% |
5.79% |
5.79% |
5.59% |
|
10
year |
6.30% |
6.30%
|
6.25% |
6.25%
|
6.25% |
6.25% |
6.25% |
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Table shows
the discounted residential mortgage rates for 3, 5 and 10 yr
closed fixed rate mortgages
For a longer term view, click here
to see the 3, 5 & 10 year best residential
rate since September 2003 (updated
monthly)
Click to view other
relevant graphs
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The Top 5 Credit
Misconceptions
5) Closing old accounts will
improve your credit score
4) Co-signing a loan doesn’t make you
responsible for the account
3) Paying off a negative record will
get it removed from your credit report
2) Paying off a debt will
make your credit score jump up 50 points right away
1) Checking
your credit reports will lower your credit score
(From
Transunion’s September 2007 newsletter)
Pre-Approvals: What You Need to
Know
Click on this link to learn how a
pre-approval can help with you with your home
search.
The Cost of a Cashback
Mortgage
I often get asked whether a
cashback mortgage is a good option for borrowers. While a cashback
may seem attractive, be aware that unlike other cashback products,
mortgage cashbacks are not free. Lenders will increase the interest
rate to cover the cost of the cashback. In this article, I
explain the costs involved in taking a mortgage with a
cashback. Click here to view the full
article.
Mortgage Solutions for Seniors:
Reverse Mortgage vs. HELOC What are the financing options for
seniors? For those who still have income, it may be possible
to obtain a home equity line of credit (HELOC), irregardless of age.
Another popular option is to take out a reverse mortgage. Each
option has its pros and cons. Click here to help you
decide which option is best for you.
Are you working with a
professional?
What exactly is a professional?
Here's my definition:
1) An expert in his field
2) Responds quickly to all emails and
phone calls
3) A person with the highest level
of integrity - Will only recommend products and services that
are in your best interest. If I do not have the right product
for you, I will point you in the right direction.
4) No pressure, hype or mind games -
only honest advice.
Relevant
Links
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