Variable VS Fixed Mortgage rates?

[EWO]

Currently I have a variable 2.6% rate which will end in about 2 years.
I just wanted to get people take on real estate. I am trying to determine if I should lock in my rate now at 2.94% 5 year or remain variable.

Thanks for the feed back.

[NancyV]

2.6-2.94 is an excellent rate. If you wait I doubt you'll get it much lower so it may be good to lock it in. I'm about to refinance from a 4.3% to a 2.43% rate. In our case we don't have to pay points in order to refinance since it's a VA backed loan and disabled vets don't have to pay to refinance. I would think that a variable interest rate will inevitably go up. Interest rates are very low now and the fed will have to increase interest rates at some point, so locking it in at a low rate could be wise.

[mgray]

It depends on where you live. In the US these low rates will be with us for a while. But I don't think you would go wrong locking in a fixed rate.

[EWO]

Canada

Today the rate went down by 0.25
I was just about to lock it. I guess I'll have to keep any eye on it over the next few months.
Im worried that it could go up by a point or more over night in the next few months, then we would all be screwed.

[Deega]

HI EWO, I would also locked in at 2,94, 5 years, if you could negotiate a longer term (>5years), the better.

I, like Nancy says, think that the rate will have to go up sometime! When?, it seems difficult to predict, we have seen these lower rates for many years now, it will take unprecedent higher inflationary market to have the Fed (or Central Bank in Canada) raise the interest rate.

Theoritically, the interest rate follows the Law of Supply and Demand, but in practise, the rate is probably manipulated by the Financial World. So the Financial World will not take unnecessary risks to bring pain to the 1% of the wealthy of the World.

The best to you!

[Matisse]

Lock it in... it won,t go lower and eventually will raise...

[EWO]

Am I correct that the rate CAN change every 3 months.
So maybe I will wait 2 months and lock it in before the next possible change.

I am not even sure does the local bank automatically lower their rate once Bank of Canada does it? Or do they still have the discretion to leave it as is?

[Deega]

Am I correct that the rate CAN change every 3 months.
So maybe I will wait 2 months and lock it in before the next possible change.

I am not even sure does the local bank automatically lower their rate once Bank of Canada does it? Or do they still have the discretion to leave it as is?


EWO, if I recall correctly my Economic Learning, at least in Canada, the Canada Central Bank adjust the rate in light of rise or fall of Inflation, the Monetary Flux (Mass) of money in the Market, the Balance of our Commercial Transactions on the Market, other. So is it every 3 months?, asks the Bank you're dealing with, they will inform you. Or check on the Web, you'll find this information.

If the Canada Central Bank lower the Prime Rate, usually, Charter Banks will follow, if they don't, they would loose clientele, and VICE VERSA if raise, but in this case, Charter Banks would attract more clients.

Charter Banks have particular responsabilities toward the Canada Central Bank, they have to pay a percentage amount of every dollar they received in savings from clients.

The best to you!

[aniN]

whatever you want, just don't go with euro or franc :) http://www.theguardian.com/commentisfree/2015/jan/16/switzerland-euro-crisis-swiss-franc-abolition-cap

imagine that you have mortgage in the evening 80.000 eur, on the morning next day 100.000 ( after paying it for a few years already ) This calculation is just example how bad is now in EU if someone took loan in franc instead in euro.

http://www.cei.int/node/1767/6920

and what he said, mr. Mramor: oh, that is between people and bank .

http://www.sloveniatimes.com/central-bank-rejects-need-for-measures-over-swiss-franc-fallout

BANK OF SLOVENIJA or ECB OR BLAJFA or whatever you want it to name :) ( in the end it comes down to a few people that owns this **** ( pardon my language :) ) .

do you see on the picture, what supports THE BANK? well... the people... it cant be more obvious than this :)

28710

[EWO]

I checked with my bank, they said their rate has not changed, because the prime rate is still 3%.
The Key interest rate may or may not affect my mortgage rate. Its too early to tell. So I will wait for now.
The next time frame for change is March 4.
I find this strange because I have been seeing 33 everywhere for the last few months. Maybe its a sign to lock in by March 3 HEHE.

[mgray]

The one thing you have going for you is the strong looney. I believe the Bank of Canada may have to cut that rate in order to help its exports against other countries cutting their rates.
Just a thought from a southern neighbor.