HawthorneVillager.com

Hawthorne Village (Milton) Discussion Board
It is currently Thu Mar 28, 2024 1:16 pm

All times are UTC - 5 hours




Post new topic Reply to topic  [ 11 posts ] 
Author Message
PostPosted: Mon Jul 05, 2004 8:06 pm 
Offline
User avatar

Joined: Mon Jul 05, 2004 7:52 pm
Posts: 470
Great site Rick, keep it up. Lots of useful information.

Has everyone given any thought to what interest rate/mortgage term they will select ? Short-term/long-term/variable ?

My recommendation would be to choose one of the RBC preferred rates/terms that is guaranteed and capped for the 18 months and then about 3-4 months before closing start shopping around for the best rate possible. RBC would most likely match the best rate you get elsewhere anyway.


Top
 Profile  
Reply with quote  
PostPosted: Tue Jul 13, 2004 11:30 am 
Offline
User avatar

Joined: Thu Jul 01, 2004 10:25 am
Posts: 2441
Location: Greensburg Elev B, Robson Cres
Derek&Ruvani wrote:
Has everyone given any thought to what interest rate/mortgage term they will select ? Short-term/long-term/variable ?

My recommendation would be to choose one of the RBC preferred rates/terms that is guaranteed and capped for the 18 months and then about 3-4 months before closing start shopping around for the best rate possible. RBC would most likely match the best rate you get elsewhere anyway.


We went and got 3 different quotes from the banks and chose RBC.
Don't know if it was the best deal or not, but for the 5 year term locked in at 5.1% and if rates go down within the time period of 18 months, we get to keep the lowest rate...yeah right as if that is going to happen :roll:

But definetly we should be looking around for better deals.

Anyone else?


Top
 Profile  
Reply with quote  
PostPosted: Tue Jul 13, 2004 12:09 pm 
Offline
User avatar

Joined: Mon Jul 05, 2004 7:52 pm
Posts: 470
Wow, they gave you a rate of 5.1% for 5 years ? I am surprised, thought that they would stick to the 5.6% they were advertising.

Did you find other banks that were willing to give you financing for new construction ? Would you mind sharing the names of those banks ?

Thanks
Derek & Ruvani


Top
 Profile  
Reply with quote  
 Post subject: Interest Rates
PostPosted: Tue Jul 13, 2004 12:34 pm 
Offline
User avatar

Joined: Mon Jul 05, 2004 7:52 pm
Posts: 470
I agree that the short term variable rate always wins out and will most likely go in that direction, but pay the same amount bi-weekly as if I were using a 5 year fixed rate. Considering the spread between variable and 5 year is currently 2-2.5%, I can save quite a bit of interest doing this. However, I would like to have a capped 5 year fixed rate "in my backpocket" just in case rates take a sudden upturn over the next 12 months (which is not very likely).

Your thoughts ?


Top
 Profile  
Reply with quote  
PostPosted: Tue Jul 13, 2004 2:25 pm 
Offline
User avatar

Joined: Thu Jul 01, 2004 10:25 am
Posts: 2441
Location: Greensburg Elev B, Robson Cres
Derek&Ruvani wrote:
Wow, they gave you a rate of 5.1% for 5 years ? I am surprised, thought that they would stick to the 5.6% they were advertising.

Did you find other banks that were willing to give you financing for new construction ? Would you mind sharing the names of those banks ?

Thanks
Derek & Ruvani


We were able to ask in April/May a day after the rates went up for their best rate and we got 6.1 less 1%


We also went to Bank of Montreal. If I didn't get RBC they would have got my vote. They were on the spot fast & very professional.

We also tried PC Banking and this was the worst for service by far...not to knock them too much since I have a couple of bank accounts there, but for more financial items they take your information and then sent it to one of their financial advisors. The first time they had lost our request, the second time it took a very long time + most phone messages were not returned..

My only opinion about Fixed is for the 5 years I know what interest it is going to be.

On another note. My parents once had to pay 14-18% for at least a year. I wouldn't want a variable rate when that occurred.


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Fri Jul 23, 2004 11:25 am 
Offline

Joined: Tue Jul 13, 2004 1:55 pm
Posts: 541
Hi Derek,
How do you cap the fixed rates "backpocket" when one has variable rates?
Can you do two things at the same time.
Please advise.
Trini


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Fri Jul 23, 2004 12:20 pm 
Offline
User avatar

Joined: Mon Jul 05, 2004 7:52 pm
Posts: 470
Hey Trini

You take the 5 year capped rate being offered by RBC, it is good up until closing, and you will get the lowest rate if the rates drop during that time. That is your backpocket rate and protects you agains a sudden spike in short-term (variable) interest rates.

Then, just prior to closing, you look at the variable rates. If the variable rates are still good, take that and decline the 5-year capped rate.

Derek


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Mon Sep 27, 2004 2:17 pm 
Offline

Joined: Tue Jul 13, 2004 1:55 pm
Posts: 541
Did the interest rates go up?
Trini


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Thu Oct 07, 2004 8:38 am 
Offline

Joined: Tue Jul 13, 2004 1:55 pm
Posts: 541
I heard that rates are gone up again by .25%.....I hope there is no more increase...


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Thu Dec 16, 2004 10:08 pm 
Offline
User avatar

Joined: Thu Jul 01, 2004 10:25 am
Posts: 2441
Location: Greensburg Elev B, Robson Cres
I heard via 680 News that the dollar is going to be from 80 to 90 cents next year. I hope that means our mortgage rate is going to go down even more.

Tim


Top
 Profile  
Reply with quote  
 Post subject:
PostPosted: Fri Dec 17, 2004 12:13 pm 
Offline

Joined: Thu Jul 01, 2004 2:14 pm
Posts: 292
Tim&Sandra wrote:
I heard via 680 News that the dollar is going to be from 80 to 90 cents next year. I hope that means our mortgage rate is going to go down even more.

Tim


From the drop in the dollar this week I think that we're going to see interest and the dollar heading in the same direction. If the interest rates do not rise, neither will our dollar.


Top
 Profile  
Reply with quote  
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 11 posts ] 

All times are UTC - 5 hours


Who is online

Users browsing this forum: No registered users and 7 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB® Forum Software © phpBB Group
[ Time : 0.011s | 13 Queries | GZIP : Off ]