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Adjustable/Variable Rate MortgageThere has never been a better time to take advantage of the variable rate mortgage. With prime at a near-all-time low, this is one of the most effective mortgage products on the market! OPTION 1: Variable Rate: 1.74%*Here's how it works...The variable rate mortgage is based on a 5 year term. As an introduction, the first six months are set at 4.00% (Prime-2.00%). After this great initial rate your payments are based on PRIME less .40% for the remainder of the term. Prime Rate Today is 6.00%These numbers and terms sound great so far, but what if prime goes up? This brings up another great option, at any time without penalty you can convert into a closed mortgage 3 years or greater. When you decide to convert you automatically get mortgage broker wholesale rates not bank posted! You don't have to haggle with a branch manager; with The Mortgage Centre you get the best rate in Canada! OPTION 2: Variable Rate: 5.10% (Prime-0.90%)Here's how it works...The variable rate mortgage is based on a 5 year term. These numbers and terms sound great so far, but what if prime goes up? This brings up another great option, at any time without penalty you can convert into a closed mortgage 3 years or greater. When you decide to convert you automatically get mortgage broker wholesale rates not bank posted! You don't have to haggle with a branch manager; with Canada Hometrust you get the best rate in Canada! Best Prime Rate In 60 YearsPrepayment options are important to most mortgage holders. This gives you the ability to pay down your principal mortgage amount over and above your normal monthly payments. The Variable Rate Mortgage happens to have one of the best prepayment plans. Prepay up to 20% of your mortgage, without penalty on an annual basis. You also have the ability to DOUBLE your monthly mortgage payment on any payment date. The Variable rate mortgage gives you the opportunity to save money while the prime lending rate is good and the comfort of knowing that when the time is right you can switch to a fixed mortgage.
Introductory
Rate
ARM's Most
adjustable
rate
loans (ARMs)
have a
low
introductory
rate or
start
rate,
some
times as
much as
5.0%
below
the
current
market
rate of
a fixed
loan.
This
start
rate is
usually
good
from 1
month to
as long
as 10
years.
As a
rule the
lower
the
start
rate the
shorter
the time
before
the loan
makes
its
first
adjustment.
Payment
Caps
- Some
loans
have
payment
caps
instead
of
interest
rate
caps.
These
loans
reduce
payment
shock in
a rising
interest
rate
market,
but can
also
lead to
deferred
interest
or
"negative
amortization".
These
loans
generally
cap your
annual
payment
increases
to 7.5%
of the
previous
payment. |
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