I am excited to report that the 5 year fixed interest rate has now dropped to 2.99%
This may be the time you wish to consider refinancing your mortgage to take advantage of this rate decrease.
If you are interested please fill out the contact form.
The main reason I don’t like them is that it does not take into consideration the fact that an individual probably has children that they would like to leave their assets to.
If they max out the equity in their home, it will either be sold at death to pay the mortgage, or their children will have to take out an ordinary mortgage upon their death to pay back the mortgage and retain the property or watch it sold outside the family to some stranger. The children are paying after the fact for the lifestyle their parents maintained while they were alive.
Yes, it will allow the home owner a tax free income to live on when they retire, without monthly payments, but to many people I meet with, passing their assets on to their children are an important part of their estate planning.
I guess it provides us with an opportunity to sell life insurance to cover those needs, but life insurance for people as they age increases and they will still have annual payments to make.
As a Certified Financial Planner it is my fiduciary duty to act in the best interest of my clients and if they have children I really struggle with a reverse mortgage being in their best interest. JMO
Having said that, sometimes the situation is right for a reverse mortgage, but people need to know the facts before they jump into a situation.
NOW IS THE TIME TO TAKE ACTION…
$100,000.00+
48 Month closed mortgage 3.19% and $1000.00 cash back on transfers and *refinance for new clients
So you get:
*rates are subject to change at any time
* if mortgage is paid in full prior to 48 months, $1000.00 is subject to pro-rated clawback.
Other great interest rates include 60 month closed at 3.19% and 60 month variable or adjustable rate-adjustable payment at Prime-.30 (currently 2.70%)
We also offer 10 year fixed mortgages.
Contact me today to get started.
I received a comment from someone regarding the rates back in the late 1970s, early 1980s.
I was working in a financial institution at that time. I remember interest rates soaring on some loans to somewhere around 32% interest and rates on investments being around 24%.
This was a time that was great for people who where looking to invest and a horrid time for those who had debt. It was an extreme shock to those whose interest rates rapidly increased on their debt and created such a hardship.
I remember seeing people who lived “high on the hog” and took winter vacations every year lose their land because of the fact they lived beyond their means.
On the other hand, I remember a small farmer with a quarter of land lose it through no fault of their own. It just became impossible for his family to survive on that quarter of land, no matter how hard they tried-and they definitely did not live beyond their means.
I believe there are measures in place today to ensure that interest rates will never go that high again, however we need to get our spending under control while the interest rates are low and we need to plan for those increasing interest rates.
We need today to get rid of those high interest or high payment credit cards and free up some cash for emergencies.We need to not purchase “wants” until we have the cash to do so rather than put it on a credit card.
We need to, if we can, consolidate our higher interest debt into a mortgage with a guaranteed rate for, at least for five years. In that 5 years we need to put the money that we save on the interest into a savings account, spend it on “needs” versus “wants”, and/or pay down extra on the debt we have.
Times are tough today for many families and many have gone from having a two income household to perhaps no funds or a different lower paying job.
If you want to change your financial life, and are not sure how to start, send me an email at info@financialfairy.net telling me your closest city, your email address, phone number and a bit about your situation and I will see if I can find someone to help you with this, whether it be consolidation or debt counseling or other means.
We need to prevent the 1980s from being revisited where possible. Let’s face it-they aren’t here interest wise, but there is still the same survival crisis today as there was then and I hate to think what will happen in people’s lives as interest rates start to rise.
I was asked a question tonight regarding whether this is the time to take out a mortgage as everyone he knows are losing their homes.
JMO If you take out a mortgage today you need to be sure that you can manage the payments when interest rates increase, because lets face it, you would normally look at a mortgage for 20 years (not much difference between 20 years and 25 years monthly payments, other than the extra five years that you pay the bank in interest) and I am willing to bet that interest rates will never be this low again. I would suggest at the least, figuring payments at 8%.
Depending on what part of the country you live in and how industry is performing over the long term, would depend on how solid the housing industry is.
I am sorry that I can’t answer your question totally. I guess a lot depends on the individual’s situation and overall debt to income.
Do you think that the banks have overextended the credit that they have granted to individuals and that is part of the issue, or are the lending institutions demanding higher payments as housing prices drop?
Are they demanding more security or is it totally due to the fact that some people have been downsized or lost their jobs totally?
Again, I have to say it depends on a person’s personal situation, and I would say also it depends on the amount that is needed to be borrowed for the purchase.
One of the reasons I started the site is to try to provide information to people so they understand what some of the issues are that they may face and be prepared with a plan to deal with those issues or if the issues seem to great, they will know that it’s time to walk away from the deal before signing up for it.
To clarify mortgage terms:
Open mortgages allow you to pay off the total amount outstanding, or a portion of it at any time without penalty.
Closed mortgages have a set repayment schedule. If you wish to repay the loan in full there is often a penalty to do so, based either on the amount owing or a percentage till the due day would have been, or based on a percentage of the interest rate.
Many institutions have different policies, so it is your responsibility to know or find out what type of mortgage you have and what the payout terms and conditions are. This is something you should know.
Convertible mortgages will allow you to change to a longer term, closed mortgage at any time. An example of this would be something called a “lock and roll”
There are some adjustable rate, adjustable payment options out there.
You may find some out there that fixed rate open, fixed rate closed, fixed rate convertible, and variable rate mortgages. Make sure you understand what you are going into.
Its a common argument. I have to say that in the long run, lawyers can actually save you money and I do not recommend skimping in this area.
They do this everyday. They know what to look for in a contract or an offer to purchase. They can register your mortgage for you at the financial institution’s request. They can request a copy of your new land title to ensure there is nothing else registered against it that will make it difficult for you to purchase the property with nothing owing on it except your mortgage.
You need to have a qualified home inspector for sure.
Things that should be inspected:
Make sure you get a estimate of what it will cost to fix these repairs and how long before you need to repair things.
You should accompany the inspector on the inspection and make sure you ask about anything you are not sure about.