Attached is as current an interest rate update as I can provide today. Rates and policies both are very fluid!
The best 5 year rate is now around 4.34% meaning someone can pay just $434 for a $100,000 mortgage over 35 years. Let's look at it another way.
Assume you know someone who is paying $1200 a month for rent right now. If we assume $2000 a year for property taxes and $55 a month for heat estimate for qualifying purposes only, that $1200 a month could be carrying a mortgage in the amount of $226,000.
If your job is secure - if you live and work in a stable community - this is a very affordable time to be obtaining debt.
It could also be a very attractive time to consider refinancing or renewing early - we are developing a simple five minute mortgage check-up to answer the question - is it the right move for me now?
This information was provided by but is not meant as advertisement for:
Jim Cook
Mortgage Agent
Mortgage Intelligence
519-396-6800 - Kincardine
519-389-6900 - Port Elgin
Port Elgin AND Southampton real estate information including homes for sale. The opinions posted on this blog are that of the writers, Jason Steele who is a registered Real Estate Broker in Ontario, Canada. *Readers are cautioned to check the validity of each topic. FOUR SEASONS REALTY BROKERAGE IS LOCATED IN COLLINGWOOD ONTARIO. http://www.greybrucearea.com
Monday, February 9, 2009
Tuesday, February 3, 2009
WHAT MAKES A BUYERS MARKET?
It is so interesting watching people wait for prices to hit rock bottom here in Canada! The problem is that the media is indicating recession, and that prices are falling. Let me share a little historical trend for you. Last year our board reported the 2008 stats and comparing them to 2007, I can tell you that prices have not dropped the way that the media is reporting. Sure in some locals it may be relevant, but in areas such as Bruce County, where employment, and economic concerns are not as bold, prices remain stable. So what then makes this a perfect BUYER opportunity? Selection, interest rates and small price drops!
Consider a house price in 2007 at 195,000 and the same house now at 200,000. Although some may think it's costing them more to purchase really it is not.
On average, interest rates in 2007 were 5.7% and today in February 2009, 4.6%
Assuming a fixed Term of 5 Years and a 25 year amortization
Mortgage 1 $200,000 @ 4.6% would have a monthly pmt of 1118.09
Mortgage 2 $195,000 @ 5.7% would have a monthly pmt of 1213.06
Mortgage 1 would pay almost $43,000 interest and $24,117.64 in principal
Mortgage 2 would pay over $52,000 interest and $20,570 in principal
So as you can see, Mortgage 1 which is at todays home price and lower interest than last year, actually costs you less in monthly payments, interest and your are putting more of your hard earned money towards principal. So, what makes more sense, waiting for prices to fall and interest rates to rise?
Consider a house price in 2007 at 195,000 and the same house now at 200,000. Although some may think it's costing them more to purchase really it is not.
On average, interest rates in 2007 were 5.7% and today in February 2009, 4.6%
Assuming a fixed Term of 5 Years and a 25 year amortization
Mortgage 1 $200,000 @ 4.6% would have a monthly pmt of 1118.09
Mortgage 2 $195,000 @ 5.7% would have a monthly pmt of 1213.06
Mortgage 1 would pay almost $43,000 interest and $24,117.64 in principal
Mortgage 2 would pay over $52,000 interest and $20,570 in principal
So as you can see, Mortgage 1 which is at todays home price and lower interest than last year, actually costs you less in monthly payments, interest and your are putting more of your hard earned money towards principal. So, what makes more sense, waiting for prices to fall and interest rates to rise?
Rate Drop!
The Bank of Canada prime rate is now it's lowest EVER, and fixed rates are very low right now also. People are split between taking a 5 year mortgage at 4.49% or a 1 year at 3.5%. So speaking of "split", why not split your mortgage and take advantage of both great rates. In the meantime, get shopping for that home as many buyers are out there already looking to scoop up a deal, and spring pricing could see a rise in price before long. Call Jason Steele for your real estate needs. I will "listen to you". 519-377-2147 cell
Wednesday, December 10, 2008
MORTGAGE RATES SLIDE AGAIN!
MORTGAGE RATES STILL FALLING
In an effort to boost the economy and consumer confidence, many lenders have once again dropped interest rates. What does this mean. Well, I am looking at one rate that is 4.9% on a 5 yr fixed. Last month we were seeing rates around 5.9% which would be a difference of approx at least $50.00/mth in savings and over approx $4500.00 in interest savings on a 5 yr term for every 100,000 in mortgage dollars. Think of what you can do with that savings. Or if you were holding off, waiting to see what the markets were going to do, you are in luck. Prices are down, inventory remains high, and now interest rates are LOW. What better time to buy than in a buyers market with low interest rates!
Thursday, November 27, 2008
A GREAT TIME TO BUY!
Interest rates came down today at most major lenders, some as much a .50 basis points! This is a buyers market for list price and negotiating, so why not take advantage NOW! Before prices rise again as they typically do in the spring! Call Jason Steele Broker for more information. 519-377-2147
Sunday, October 26, 2008
Choosing someone to represent you
Shopping for a real estate representative is somewhat like shopping for a car in my opinion. Realiable, always working, and there when you need it! Did you buy your car because of the incentive from the dealer, what happens after when you need service? Is that dealer there for you? Much is the same in real estate.
Just because the deal is done, doesn't mean you should be without someone to talk to. What about Tarion warranty, or re-sale, how about finding out more information on the property, and most importantly DAY OF CLOSING!
Were you offered a "free home inspection" or "Home Staging"? Are you being offered "great service before, during and after the sale as well"? With the free home inspection, is it with the inspector of your choice? Check the fine print, because maybe it's not. What about the home staging. Maybe you will have a conflict with the stager...can you use whomever you wish?
Sure there is value in a home inspection (approx $300-$400) but does the home inspection tell you the MLS stats, or what the neighbor is like down the street or go that extra mile to provide just as important information?
Basically what I am saying is, that no matter who you choose, do your homework on what services will be provide for you, period.
Just because the deal is done, doesn't mean you should be without someone to talk to. What about Tarion warranty, or re-sale, how about finding out more information on the property, and most importantly DAY OF CLOSING!
Were you offered a "free home inspection" or "Home Staging"? Are you being offered "great service before, during and after the sale as well"? With the free home inspection, is it with the inspector of your choice? Check the fine print, because maybe it's not. What about the home staging. Maybe you will have a conflict with the stager...can you use whomever you wish?
Sure there is value in a home inspection (approx $300-$400) but does the home inspection tell you the MLS stats, or what the neighbor is like down the street or go that extra mile to provide just as important information?
Basically what I am saying is, that no matter who you choose, do your homework on what services will be provide for you, period.
Saturday, October 25, 2008
The "NEW" Market
So the hype, the fear, the anxiety...what does it all mean?
Everyone is asking the same question, what should I do?
Well if you ask a Real Estate guru such as Donald Trump, he'll tell ya things like "Be fearful when others are greedy. Be Greedy when others are fearful", meaning now is the time to by as many are fearful.
Prices are down, inventory is high and that equals buyers having the opportunity in many cases to purchase what they want, close to the price they want. Quite a difference over last year, where you bought it because it was all that was available at the time.
Think about it now, prices are down over last year in many markets. Many prices have reduced to a point where they are at their lowest possible price. Now is the time to buy.
Will the prices drop futher? Of course that depends on the market(none of us have a crystal ball) Again, most homes are priced where the seller can afford to let them go. We are not in a forclosure market like in the states, so really there are not many firesales/power of sales here!
Should I wait to see if the prices go down further? Read the paragraph above again. Now ask yourself this, "What usually happens to housing prices in the spring"? That's right, they go up. Can you afford to wait for the prices to go up?
We are in an area where the economy is still level. More employers are moving to town, Bruce Power is still strong and should remain that way for many many years for the most part. Canadian real estate markets are far-better positioned than their American counterparts for a good number of reasons.
1) interest rates remain favourable
2) we have less debt personally than the US per person
3) The Canadian banking system is one of the best and strongest in the world. And the govement jumped on Canadian mortgage rules before havoc starts, not after the fact like in the US.
4) SO MUCH MORE....JUST READ ANY FINANCIAL REPORT FROM A REPUTABLE SOURCE.
Real estate has peaks and valleys, and compared to last year(2007) of course we are in a bit of a valley but that is because last year was a tremendous record year.
The time couldn't be better even for Sellers that want to "move-up".
Everyone is asking the same question, what should I do?
Well if you ask a Real Estate guru such as Donald Trump, he'll tell ya things like "Be fearful when others are greedy. Be Greedy when others are fearful", meaning now is the time to by as many are fearful.
Prices are down, inventory is high and that equals buyers having the opportunity in many cases to purchase what they want, close to the price they want. Quite a difference over last year, where you bought it because it was all that was available at the time.
Think about it now, prices are down over last year in many markets. Many prices have reduced to a point where they are at their lowest possible price. Now is the time to buy.
Will the prices drop futher? Of course that depends on the market(none of us have a crystal ball) Again, most homes are priced where the seller can afford to let them go. We are not in a forclosure market like in the states, so really there are not many firesales/power of sales here!
Should I wait to see if the prices go down further? Read the paragraph above again. Now ask yourself this, "What usually happens to housing prices in the spring"? That's right, they go up. Can you afford to wait for the prices to go up?
We are in an area where the economy is still level. More employers are moving to town, Bruce Power is still strong and should remain that way for many many years for the most part. Canadian real estate markets are far-better positioned than their American counterparts for a good number of reasons.
1) interest rates remain favourable
2) we have less debt personally than the US per person
3) The Canadian banking system is one of the best and strongest in the world. And the govement jumped on Canadian mortgage rules before havoc starts, not after the fact like in the US.
4) SO MUCH MORE....JUST READ ANY FINANCIAL REPORT FROM A REPUTABLE SOURCE.
Real estate has peaks and valleys, and compared to last year(2007) of course we are in a bit of a valley but that is because last year was a tremendous record year.
The time couldn't be better even for Sellers that want to "move-up".
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