A ask on mortgages - irregular vs. fixed etc...?
I just bought my first place, and the rate offered, and that i signed was 2.25% 5yr fluctuating. Now, everyone tells me to lock it in at that rate. But my parents be over last night and said that if I lock it within it could go up by a point or so. Any truth to this? Or should my rate stay the same even if I locked it within? (CANADIAN QUESTION)
Answers:
Your variable can increase each year. Read the fine print. It is base on the prime plus points. If the prime increases so does your mortgage. Locking in a rate means the interest rate is duplicate for the next 30 yrs. If you can live with the suspense and worrying nearly it climbing each year that is your conclusion. You will not find a conventional mortgage at 2.25 but more around 5.
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Answers:
Your variable can increase each year. Read the fine print. It is base on the prime plus points. If the prime increases so does your mortgage. Locking in a rate means the interest rate is duplicate for the next 30 yrs. If you can live with the suspense and worrying nearly it climbing each year that is your conclusion. You will not find a conventional mortgage at 2.25 but more around 5.
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