Question
Bad economy & mortgage rate in CANADA?
I will very soon renew my mortgage. My bank,the Royal Bank of Canada called to offer me 3.95% for 5 years. I currently pay 5.29%. Is their offer a good one, considering the economy is shitty? I LIVE IN CANADA. Thank you!
7 months ago - 1 answers
Best Answer
Chosen by Asker
I used to originate mortgages in the US for them and they had the best ARM rates in the Secondary Market. Check into the 15 and 30 year fixed rate options too. Also compare no points to paying 1 to 2% in points. Most of the time paying points can be worth the cost if you plan to stay in the home for 3-4 more years. Rather than using a break even calculation, dividing the cost by the monthly savings, I suggest re-investing the payment savings toward your principle and calculating the number of payments you save over the term by paying the loan off early. It would likely be the last time you would refinance to lower your payments.
7 months ago
Asker's Rating: 