New Mortgage rate options

[rbrost]

Thanks in advance for your comments and constructive feedback.



I’m looking to take out a 35 year mortgage on a condo I recently closed on in Edmonton. Final mortgage documents will be in place within the next 10 days.

The bank has offered three options, first, a floating rate (which is what I have on all my other property’s) at prime plus one, the second option is a 12 month term at 4% or the third option is 5 years at 4.79%.



My questions to the group are (a) your thoughts on the options proposed, (b) where you feel rates are headed and over what time line, Â given these options which one you would select and why.





Regards



Rick

 

[Thomas Beyer]

QUOTE (rbrost @ Jan 25 2009, 03:54 PM) Thanks in advance for your comments and constructive feedback.



I’m looking to take out a 35 year mortgage on a condo I recently closed on in Edmonton. Final mortgage documents will be in place within the next 10 days.

The bank has offered three options, first, a floating rate (which is what I have on all my other property’s) at prime plus one, the second option is a 12 month term at 4% or the third option is 5 years at 4.79%.



My questions to the group are (a) your thoughts on the options proposed, (b) where you feel rates are headed and over what time line, © given these options which one you would select and why.
a) or c) are both good options .. and if you cash-flow OK with option c) and wish to own 5 years or so I`d go with that ..

 

[GarthChapman]

Rick, do what allows you to sleep soundly at night. All three are very reasonable costs of borrowing. It comes down to what you think is going to happen in the future with interest rates, and since no-one has a reliable crystal ball in that area it comes back to you being comfortable with your decision.

P.S. I am seeing 4 and 5 year rates last week dropping to as low as 4.49%

Hope that helps,

 

[Nir]

Rick,

My sleeping quality with regards to interest is best when I take the mortgage that is expected (statistically) to cost me least. Therefore, my preference is variable rate.

Good night,
Neil

 

[PeterKinchMortgageTeam]

QUOTE (rbrost @ Jan 25 2009, 04:54 PM) Thanks in advance for your comments and constructive feedback.



I`m looking to take out a 35 year mortgage on a condo I recently closed on in Edmonton. Final mortgage documents will be in place within the next 10 days.

The bank has offered three options, first, a floating rate (which is what I have on all my other property`s) at prime plus one, the second option is a 12 month term at 4% or the third option is 5 years at 4.79%.



My questions to the group are (a) your thoughts on the options proposed, (b) where you feel rates are headed and over what time line, © given these options which one you would select and why.





Regards



Rick


Hi Rick,

Current rates are signifigantly lower than those quoted above, and there are several lenders offering prime + .8% as opposed to prime + 1%. I would first try to get a more current rate quote.