Bond yields continue to spike and with that fixed rates have now increased over the past week...A few weeks ago your average 5 year fixed rate was anywhere from 2.79% - 2.89%...That same 5 year fixed rate will be approx. 3.49% effective tomorrow. With the INCREASE in FIXED rates, we have also seen DEEPER DISCOUNTS with respect to VARIABLE rate MORTGAGES. VARIABLE rate mortgages will probably be the new flavor of the month now that we are seeing VARIABLE rates as low as 2.50%. With VARIABLE rate, you get the flexibility of being able to LOCK into a FIXED term down the road with no cost. This is a great feature, especially if yields come back down and fixed rates follow. REMEMBER: When applying for a VARIABLE rate mortgage, your lender will need to approve you for your mortgage using the 5 year posted rate. This can work against some purchasers depending on your purchase power. For any questions or mortgage needs, please feel free to contact me. Team Irvine: Make it Easy - Simple Solutions, Better Experiences!
Posted on: Tue, 25 Jun 2013 03:28:44 +0000
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