- Joined
- May 12, 2008
- Messages
- 172
I currently have a variable rate for a 5 yr term on a rental property. prime-.5% so currently it is 2.5% that Im paying.
since the word is that rates will be going up-by how much in the next 3-4 yrs is debatable and everyone is unsure of, like many people we're considering if this is a good time for locking it in on a fixed rate.
thoughts from experts welcome.
Also, since it is a conversion, moving it to another bank will cost about $2k in fees, so we would have to take whatever it is that the bank offers. Firstline, our bank for this mortg, is offering a 3 yr fixed rate of 3.55% and 4 yr at 3.89%. (I wonder though how we can lock it for a 3 yr term when we've only started our 5 yr term from April 2010-but the person on the ph said that option is avail, I hope he's right)
what would be a good thing to do? convert or sit tight and go with the increases. it would take 4 increases of 25 basis points each for the rate to get to 3.5% for us, which I would think might happen in about 12 mnths. after that, im no expert.
Advise, suggestions welcome, esp from experienced sources like brokers and Thomas Beyer (your opinions many of us value no doubt.)
Thanks
since the word is that rates will be going up-by how much in the next 3-4 yrs is debatable and everyone is unsure of, like many people we're considering if this is a good time for locking it in on a fixed rate.
thoughts from experts welcome.
Also, since it is a conversion, moving it to another bank will cost about $2k in fees, so we would have to take whatever it is that the bank offers. Firstline, our bank for this mortg, is offering a 3 yr fixed rate of 3.55% and 4 yr at 3.89%. (I wonder though how we can lock it for a 3 yr term when we've only started our 5 yr term from April 2010-but the person on the ph said that option is avail, I hope he's right)
what would be a good thing to do? convert or sit tight and go with the increases. it would take 4 increases of 25 basis points each for the rate to get to 3.5% for us, which I would think might happen in about 12 mnths. after that, im no expert.
Advise, suggestions welcome, esp from experienced sources like brokers and Thomas Beyer (your opinions many of us value no doubt.)
Thanks