Quote:
Originally Posted by fundmark19
Mike,
I have been hearing about a 3.85 5 yr fixed rate floating around. Are you able to get this rate to?
( I don't want to say lender or who I got info from to impede on your thread)
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I am able to get that rate as well. You have to be a bit careful with some REALLY low rates like that though. This is what is called a no frills mortgage (if it is in fact the one I am thinking of). It doesn't give you any flexibility at all as far as lump sum payments go to pay the mortgage down faster, or increasing your payments at all. It is also very restrictive when it come to porting the mortgage to another property should you ever need to. It is very strict and not flexible which you have to be careful of.
For some people it may be fine and meet their needs, however it is pretty restrictive and I make sure to let my clients now that going in. In my opinion for a few extra points you can get a far more flexible option.
As far as rates going up as I was warning about in earlier posts, it hasn't happened yet. The employment report that was released on Friday showed unexpectedly low job growth which has stalled banks on raising rates for now. The increases are coming for sure, just don't know exactly when though.
EDIT: I just had a rate notice sent to me that 3.89% is available and it is NOT a no frills mortgage. Lots of flexibilty and different options.