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Originally Posted by tvp2003
Are there stats as to how many took variable rate mortgages versus fixed rate?
I have to say, there ought to be a mandatory course out there for people to figure out how mortgage rates are calculated, how they fluctuate, what an IRD is, the actul difference between insured and conventional mortgages, etc. I sure would have benefitted from something like that -- it's the biggest decision most people will ever make in terms of actual dollars coming out of their pocket.
EDIT: I see MillerTime posted some stats above -- if you're a first time homeowner (and don't have any equity elsewhere), that 48% figure IS staggering  |
Honestly, if I didn't have both an adjustable rate mortgage and a variable rate mortgage at the same time and noticed that the VRM mortgage payments weren't increasing, I would have never known there was a difference between lenders on their variable term products. I had no idea I had signed on to 2 different products as it's not told during discussions with brokers and lenders (and I consider myself decently informed).
I was on ARM for one of my properties since 2018, and I simply thought variable rate meant your payments increase or decrease as interest rates fluctuate.
Do you know why? Because that is literally how it was described to me, this is from the lender.
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I wanted to reach out to you to see if you would be interested in locking in a rate at this time by converting your variable term into a fixed term by early renewing your mortgage.
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And that's how my ARM was described, a variable term.
Same thing with collateral vs conventional. TD never once mentioned their mortgages were collateral and its impact (when you are a new buyer, you don't really know that banks have this sleazy product meant to penalize you and stay stuck with them)
People put too much trust into what experts provide without their own due diligence.