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All About Mortgage Rates

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Mortgage rates are often the most important factor when choosing a lender and the type of loan. The interest rate affects the monthly payment the borrower has to make. If mortgage rates increase then, unless the interest rate payable on the loan is capped or fixed, the amount payable each month will also increase. The length of the loan term also affects the amount payable each month. There is a direct relationship between the term of the loan and the monthly installment. The monthly installment will be less the longer the term of the loan.


Fixed mortgage rates tie in the interest rate current at the start of the mortgage for either the entire term of the mortgage or for a set period. If you wish to have a set amount for each installment then a fixed rated mortgage seems like a good option. It will give you the security of knowing what you are going to have to pay each month. The monthly installment does not increase when mortgage rates go up. However, if the underlying interest rate decreases then borrowers on a fixed rate mortgage will not receive any decrease in their monthly payment. In the case of variable or adjustable rate mortgages the amount payable each month may increase or decrease depending on the prevailing interest rate.


There a plenty of factors that determine what loan is right for you. Mortgage rates are important but you need to consider whether or not you need the security of a fixed rate mortgage and what term your mortgage should have.


Mortgage rates depend on the preferred term. Mortgage terms will normally be between fifteen an 30 years although terms as long as fifty years have been known. The state of the economy, the type of property, the number of occupants and the credit worthiness of the borrower are also big determiners of the mortgage rate.


Mortgage rates are applied to the outstanding principal amount. The rate is decided upon by the lender and depends on the factors referred to above. As the principal amount reduces the amount of each installment that is applied to the principal will increase. So at the start of the mortgage most of the installment will go towards paying off the interest, at the end of the terms the majority of the installment can be applied to the principal amount. Borrowers can arrange just to pay interest in the first few years but although this may relieve some financial pressure at the start of the mortgage it may mean the mortgage costs quite a bit more over its duration.


Another option is to have an interest only mortgage which means that all you have to pay each month is the interest. The amount payable will depend on the mortgage rates unless the mortgage has a fixed rate. You then need to put in place some other means of paying off the capital borrowed. This could be by way of an endowment or pension.

Shelley Green is the owner of http://www.mortgages-click.com, a site that specializes in Mortgages. Shelley Green is also the owner of Loans Click and Refinance Click.

All About Reverse Mortgages – Learning The Basics

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Reverse Mortgages, sometimes referred to as a Lifetime Mortgage, can give financial support to senior citizens after they have retired. But finding all about reverse mortgages is important before you decided if they are for you. These mortgages are made available to individuals of 62 or older to free up some of the equity in their homes to use as they desire. This can be done either through a lump sum payment or through monthly payments. There is also a third option and that is to reserve the money as a home equity line of credit.


Most any homeowner that is 62 can qualify for a reverse mortgage. A job is not required because the recipient will not be making payments. In the same respect, creditworthiness is not necessary because the equity is already built up in the home and is not being repaid until the home is sold or the owner is deceased.


Reverse mortgages are increasing in popularity as retirees are looking for options to supplement their retirement income. A reverse mortgage gets its name from the action of taking or reversing the equity in the home rather than building the equity.


Here are a few of the benefits to having a reverse mortgage:


*Reverse mortgages give additional financial security to seniors after they have retired. The money is also available for unexpected expenses, medical expenses, home improvements, a vacation or anything else that may be necessary or desired.


*There are no payments required while you are living in the home.


*There are no income taxes paid on the proceeds of a reverse mortgage. A reverse mortgage will not interfere with Social Security or Medicare.


*You will retain ownership of your home as well as maintaining your independence.


* Reverse mortgages are insured by the FHA (Federal Housing Authority) or backed by Fannie Mae.


*Most importantly, reverse mortgages offer a monthly income after retirement offering financial independents and peace of mind.


There are many reasons to consider a reverse mortgage, but ultimately you have to decide if this is what is in your best financial interests. Independent credit counseling is required before a reverse mortgage is granted to ensure that the applicants fully understand everything that is involved in a reverse mortgage. Finding all about a reverse mortgage can be done by contacting a reputable lender. They will answer all your questions and explain alternatives that may also work for you. A reverse mortgage can help you unlock the equity that you have in your and help you find financial security.

Basic Information you Need to Know About Getting Home Mortgage Loan

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Everyone surely believes that courage, hard work and determination are the keys to financial prosperity. One of the most predominant symbols of stability is owning a house. More often than not, owning a house today means getting a home mortgage loan for finance the purchase. A home mortgage basically entails that you pay a certain amount of monthly payment over an extended period of time (also called term, usually lasting 10 to over 30 years).

When you get yourself a home mortgage loan, it usually covers four inclusions, namely the principal amount, the interest you owe on the balance, homeowner’s insurance as well as real estate taxes. There are two different types of home mortgages, the fixed rate (where your monthly payment remains the same) and the adjustable rate (where monthly dues fluctuate), Your home mortgage loan can also include conventional, non-conventional, interest-only, reverse mortgages and home equity loans, among many others.

How to apply for a home mortgage loan

There are only three steps you need to take to apply for a mortgage. First, you simply fill out an application form and schedule a meeting with your lender. You must present all supporting evidence about your identity, financial status and credit situation. You usually need to pay around $100 to $300 for this. The next step to do is to wait for your lender to obtain your credit report for you and to verify your application and financial status.

After these two steps, your next move is to determine whether or not you should be approved or not. The decision of your lender would rely mostly on your credit standing, your financial history and the appraisal of your collateral.

You can speed up the entire application process by first checking whether you are qualified for such a loan. If you think you are, complete all your requirements and financial paperwork beforehand, ready for submission anytime your lender wants them. It is also not a bad idea to check on your application every now and then, as it will call their attention for sure.

Who can qualify for a home mortgage loan?

Anyone who has a stable income and has a nice financial standing can well qualify for a mortgage. Those with poor credit ratings may also qualify, usually at the expense of increase interest rates. Furthermore, there are many ways by which you can achieve financial stability faster with home loans. You can for example, make a large down payment to lower your rate and to make it easier for you to get approved.

The key to success in your home mortgage loan is planning ahead. A home is certainly a major purchase and preparing for it should be the way to go. You should start to aggressively save as much money as you can years before planning on your major home purchase. Get as much help as you can, sell your investments and assets if need be, use your pension plan funds or personal savings – these are all good ways to get yourself the down payment you need.

Want some more tips in fixing your finances effectively? We can be of help! Visit us at Home Mortgage Loan or FREE Home Mortgage Loan information and learn more from experts and professionals in this field and achieve the financial success you truly deserve.

Find Out All About Bad Credit Mortgages

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Is it possible to get a loan even with a bad credit mortgage? In today’s mortgage and loan trends, bad credit mortgages are absolutely possible.

In the past, applying for a loan involves a thorough check up on your credit history and income background. If your history is less than perfect or if your income is not that high or both, then your application for a loan is instantly rejected. This practice limits the number of people who can apply for a loan.

Today’s market has adopted more flexible methods. Bad credit mortgages makes it possible for people with low credit scores to still apply for a loan and get approved. When applying for bad credit mortgages loan, no pre-qualification process is involved. Lenders who offer bad credit mortgages among their list of loan programs give their customers a chance to redeem themselves. With bad credit mortgages, your credit history is nothing more than history and you still get your money’s worth.

There are several lenders who offer bad credit mortgages. When you choose one, make sure that you’ve learned everything that you need to know about bad credit mortgages. More often than not, bad credit mortgages sound too good to be true. With bad credit mortgages, It’s best if you keep an eye on the catch.

Bad Credit Mortgages for Higher Interest Rates

Bad credit mortgages are usually characterized by high interest rates. Lenders charge borrowers higher interest rates for their bad credit mortgages as compensation for the risk they take. Like it or not, borrowers who have bad credit records are loan risks and are viewed as such by lending companies. In exchange for letting these types of customers get bad credit mortgages, higher interest rates are charged. This helps protect the lender should something happen and he had to foreclose on bad credit mortgaged property.

Discount Points in Bad Credit Mortgages

Discount points in bad credit mortgages are common. A discount point is comprised of a percentage of the total purchase price. Bad credit mortgage borrowers are charged higher discount points, usually four to five points. Borrowers with credit may not pay for these points or they do but only for a very low percentage. With bad credit mortgages however, points may go as high as ten, although going this high is not a common practice and against federal law. It all boils down to insurance for the lending company. Lending companies want to make sure that they’re getting their money back from their customers’ bad credit mortgages.

Larger Down Payments for Bad Credit Mortgages

The amount of down payment required for borrowers on bad credit mortgages is larger compared to other loan types. In exchange for ignoring the costumer’s credit history, lenders charge larger down payments from the total purchase price. Borrowers may not be able to afford the upfront price of bad credit mortgages. If in any case, you can afford the down payment required, a bad credit mortgage might even prove a good thing for you. Since the down payment you made takes a considerable portion of your purchase price, this means that you pay lower monthly rates on your bad credit mortgage.

Find out more about financial issues at http://www.123-debt-consolidation-loans.com and start gathering as much information as possible before you make your decision.

The Facts About Getting A Bad Credit Second Mortgage!

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A bad credit second mortgage is a specialist area and it pays to know the facts before you begin looking for advice.

What is a Bad Credit Second Mortgage?

A bad credit second mortgage, also known as an adverse second mortgage, is a loan that is taken out on a property you already have a mortgage on. The reason for undertaking a second mortgage is usually to release some of the equity, in order to help pay other debts, or to raise finance for a particular project. An bad credit second mortgage is the name given to a second mortgage product that is specifically designed for people with an adverse credit history.

Is an adverse credit second mortgage my only choice?

Your choice of finance will depend on your current circumstances and what you need to achieve. If you have a property with an existing mortgage and you only need to raise a certain amount of capital, then you should consider a second mortgage. You can specify the amount you would like the mortgage to be for; it doesn’t have to be for the full value of your property. If you have applied for other loans or mortgages and been rejected because of your credit history, then you should investigate an adverse credit second mortgage to see if it meets your needs.

How will I know if I have an adverse credit history?

The first sign of an adverse credit history is when your application for a loan, credit card, store card or mortgage is rejected. This is usually because the lender has checked your credit rating and decided you are a bad risk for their standard products. If this is the case, you should check your credit report to see if it is accurate and so that you know exactly what position you are in. If you run several credit and store cards and have defaulted on any loan or other payments, then your credit history and rating could be affected. If this is the case, you will need to use specialist products such as a bad credit second mortgage to help resolve your financial problems.

Will it increase my debt?

A bad credit second mortgage should help you to manage your debt, provided you use the loan money to reduce your existing debts and you meet the repayment requirements on your other debts, such as your existing mortgage and your new second mortgage. This loan requires a proportion of your home as security, so it is important that you make the payments.

How can I find out more about adverse credit second mortgages?

Taking out an adverse credit second mortgage is something you should do when you have serious debt problems. For this reason, it is important that you talk to an independent professional adviser, such as a mortgage broker. With expertise in the market, they will be able to assess your current circumstances and recommend a product that will help you to manage your current finances whilst keeping monthly payments to a minimum. They will impress upon you the need to be sensible about your debts and serious about clearing them, but will also be able to help you plan properly so that you can use the capital raised by the bad credit second mortgage to improve your chances of eliminating your adverse history.

Elizabeth Grant writes exclusively for The Mortgage Broker specialist websites. To read more of Elizabeth’s articles on Adverse Credit Mortgages please visit the Adverse Mortgage Centre.

Frequently Asked Questions About Reverse Mortgages

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Reverse mortgages are an exciting and fast growing way for seniors 62 and older to keep their property and tap their equity to improve cash flow. Many people have questions about reverse mortgages and here are some common questions and answers.


What is a reverse mortgage?


A reverse mortgage is a loan for seniors 62 and older to tap their equity in their home. They do not make any payments on the loan until the house is sold.


Who qualifies for a reverse mortgage?


To qualify for a reverse mortgage, you need to be at least 62 years old and own the property free and clear or have a very small mortgage balance. Unlike traditional mortgages, credit and income is not considered for reverse mortgage eligibility.


How do I get my money?


This is up to you. It’s your equity. The only requirement is that any outstanding lien (mortgage or other debt against the home) on the property must be paid in full at the time the reverse mortgage is done. You can take the remainder of your reverse mortgage funds as a lump sum, line of credit or monthly payments. And the best part of all is, you can take any combination of these choices- some money as a lump sum to perhaps pay off bills, some as a line of credit to meet future needs, and some as a monthly amount to supplement your current income. You can even change your mind down the road- it’s your equity, it’s your choice.


What are some things that I can do with a reverse mortgage?


You can do anything you want with the proceeds as long as you pay off any liens against your home. Once that is done, the funds from a reverse mortgage can be used for virtually any purpose- supplement your current income, pay off bills, home improvement, travel, the list is virtually endless.


Why don’t I just sell my home?


Sometimes, that may be the best solution. A good loan officer will answer all your questions about a reverse mortgage and then let you decide. However, if you sell your home, where will you live? You also need to consider the costs associated with the sale.


When does the reverse mortgage become due?


Once the home is no longer your residence, the loan becomes due. Depending on the situation, you may decide to have children or other heirs sell the home, or if they want to keep the property, they will need to pay off the reverse mortgage either with their own funds, or by obtaining a regular or “forward” mortgage. In any case, a reverse mortgage is an FHA insured “Non Recourse” loan which means that you will never owe more than the property is worth. Of course, any remaining proceeds after the sale of the home will go to you or your heirs. This is a very safe and highly regulated financial product.


How can I find out how much money I qualify for?


This depends on your age, the property value and the amount currently owed. The best way to find this out is to contact your loan officer or use the calculator on the AARP website.


As you can see, reverse mortgages are here to stay. For more information about reverse mortgages and to see if they are right for you, contact your loan officer.

Carlos Scarpero is a Dayton, Ohio based reverse mortgage originator and expert. Learn more about reverse mortgages by visiting www.CarlosScarpero.com

What You Need To Know About Second Mortgages

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So many home owners think about getting a second mortgage. Others don’t even know what it means. Today I will raise a few points to explain what second mortgages are and what you need to consider when youre taking that route.


What is a second mortgage?


A second mortgage is basically taking out a second loan on top of the existing loan on your home. This loan is secured with the property for collateral. If for example the value of your home is $200 000, but you still owe $140 000 on the loan, then the $60 000 difference is known as your equity. When borrowing against the $60 000, you would then be taking out a second mortgage.


Why take out a second mortgage?


People take out a second mortgage for various reasons. They want to finance home improvements, purchase a second home, consolidate other debt for a lower interest rate, purchase a new car or pay for university tuition. Whatever the reason may be for taking out a second mortgage, first make sure there is a way of recouping the money. It is especially not wise to spend a vast amount of money on a car when it already starts losing value the moment you drive out of the dealership. It makes more sense investing in a business.


Refinance is an option


Before you decide to apply for a second mortgage, first consider refinancing. Firstly, taking out a second mortgage usually implies a higher interest rate. Rather keep your current rate or try and refinance for a lower one. Secondly, sales people get a lot of commission out of second mortgage transaction. Lastly, when choosing to refinance, you keep some equity in your home. And if there is really an emergency you, still have an exit door. But, if the prices of houses fall the value of your house is down, you could end up with negative equity and even more debt.


What to look out for


The interest rate of a second mortgage tends to be higher than the primary mortgage, due to the fact that if any problems occur, payment would first be made to the first mortgage.


Companies also charge a lending fee, also known as points. One point is equal to one percent. For example, if you are borrowing $500 000 with a lending fee of 10 points, you will pay $50 000 in points. The points differ from one company to another; therefore I recommend shopping around before making a final decision.


Be aware of balloon payments where payment starts low, but increases very quickly. Rather take the fixed rate option.


Lastly, dont forget the additional closing costs such as, appraisal fees, application costs etc. If you arent capable of paying these fees, you may not be able to take out that second mortgage on your property.


If you are considering applying for a second mortgage, please think it through very carefully and consider all your options before making a final decision on taking out a second mortgage application.

Peter Owen owns a number of properties and helps new home owners and investors reach their property goals. You are welcome to follow these links to apply for a second mortgage. Its free. Second Mortgage or Property Refinance

All you Need to Know About the Aarp Reverse Mortgage Page

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Do you wonder if a reverse mortgage is the right choice for you? Do you know exactly what a reverse mortgage is? Do you know how to find out more information on a reverse mortgage? These are just a few questions that a lot of people may have about reverse mortgages. The good news is that these questions and more can be answered through the AARP reverse mortgage information page. This webpage can give you the tools that you need to make an informed decision on reverse mortgages. Read on to discover the kind of useful information that you will find on the AARP reverse mortgage page.

The very first thing you will discover is the definition of a reverse mortgage. You should read this carefully so that you are fully aware of what a reverse mortgage is. The more informed that you become the easier it will be to make an intelligent decision. Don’t depend on other people to tell you what you should do, research for yourself.

Another thing that you will find on the AARP reverse mortgage page is an explanation of how a reverse mortgage works. This is a great explanation that is written in plain English and very easy to understand. This will help you become aware of what you are getting into when you apply for a reverse mortgage.

Do you wonder if you are eligible for a reverse mortgage? The AARP reverse mortgage page will give you the information that you need to find out if you are eligible. It will also tell you if your type of home is not eligible. Having this information will save you a lot of time and stress.

A great feature on the AARP reverse mortgage page is the explanation of how you can receive the reverse mortgage payment. Some programs will give you a lump sum, some will give you a monthly cash advance and some programs are set up to do a credit line where you decide how money you want each month. It also will tell you which program gives the largest cash advances.

Be careful when choosing which reverse mortgage program to work with. Some programs will tell you what you can do with the money. For example, some federal programs will only allow you to use the money for home repairs.

The AARP reverse mortgage page will also give you good advice on what you will pay when you get a reverse mortgage. This page will reveal to you who the cheapest lender of a reverse mortgage is in the private sector. Read this carefully to save yourself a ton of money.

As you can see, there is a ton of helpful information on the AARP reverse mortgage webpage. If you are thinking about getting reverse mortgage, study all the information on this page before you make your decision. It will save you a ton of money in the long run.

You can find out more about an AARP Reverse Mortgage as well as much more information on everything to do with reverse mortgages at http://www.ReverseMortgagesA-Z.com

Must Read Tips – What You Need To Know About Buying A Home

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The home buying process can seem complicated, but if you take things step-by-step, you will soon be holding the keys to your own home!


But before going into the buying process you should first ask yourself if your are already ready for home buying.


Do you prefer or even enjoy moving into different places. Do you prefer using your savings for things like vacations, appliances, retirement or having your own business? Do you like to enjoy not having so much trouble with regular maintenance and repairs?


If your answers to these queries are yes, then you may not be ready to delve into the home buying experience. You may have a lot of good reasons for buying a home but you should also have to consider your reasons for not wanting to.


Remember than buying home is not just the biggest financial decision you will ever make but also the strongest emotional choice in your life, so be prepared to make wise decisions when you are in this process.


Buying home always seems to be a great idea, but it is important that ownership of a certain property comes with a great deal of responsibilities too.


Of course, being a homeowner is something to be proud of but it also means having to invest money, time and energy and take on added responsibilities. So, before you decide to buy a home, make sure you’re ready.


The first things that comes into our mind when we think about home owning, is the wonderful things that is connected to it. It is true that there are a lot of good reasons for buying a home. So here are some of the good advantages of home buying.


Financial security is a very great deal of advantage when it comes to owning your own home. If the housing prices would go up, your home can provide you with some financial security due to capital appreciation.


Flexibility is another thing, when owning your house you will be able to decide all the aspects that comes with it. You can decorate or renovate your home to meet your own family’s personal tastes and needs.


And of course stability, having your own home will make you feel at ease and less burden than renting one.


Although it is really nice to think about the positive aspects of owning a home, it is also a crucial part to consider the downsides as well. Here are some of the disadvantages on home buying.

Financial Stress is a very common problem in home buying. Coming up with the down payment, meeting regular mortgage payments and other ongoing costs will tie up a lot of your cash, and can put considerable stress on your finances.


Maintenance and Higher Costs are also a big problem. Keeping your home in good shape requires time and money.


You may pay more each month for housing than you did as a renter. There are also extra costs for maintenance and property taxes.


So, you’ve decided that homeownership is right for you. Now you need to determine if you are financially ready to buy a house.


To avoid any future surprises, you can do some financial exercises to see where you stand. They include: calculating your net worth, your current monthly expenses and your current monthly debt payments.


Knowing your net worth is important because you will need this information when you discuss a mortgage with your lender.


Your net worth is the amount left over once you’ve subtracted your total liabilities from your total assets. It will also give you a snapshot of your current financial situation and show you how much you can afford to put as a down payment.


Just remember all this notes and surely you will be able to arrive at some very good decisions in home buying. Do not rush into home buying, take some time to think and view the property first before closing a deal.


Closing day is the when you finally have bought your home; you now take legal possession and finally get to call your new home your own. You are sure to feel great relief and satisfaction but remember that the home buying process isn’t over just yet. There are quite a few things that need to be done on closing day.


Make sure that your lender will provide the mortgage money to your lawyer. You must provide the balance of the purchase price to your lawyer along with the closing costs. Your lawyer pays the vendor, registers the home in your name, and provides you with a deed and the keys to your new home.

Free for sale by owner listings – sell your house for free – You can also search our database of family homes for sale by owner or read a selection of real estate articles and information at Home-Sale.com.au

The Truth About Mortgage Rates

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The best rumors have the longest staying power, and the untruths about the connection between Bank of Canada interest rate cuts and mortgage rates is a prime example. Why? Well, though Bank of Canada interest rate cuts do affect the financial industry, they do not affect every segment of the financial sector; some segments are directly affected, others are only indirectly effected, and then there are segments that are directly or indirectly effected depending on the financial product. The mortgage industry falls into that third category.

Shocked? Well, you’re probably not alone. The idea that Bank of Canada discount rate changes cause mortgage rates to change is a common misconception that’s been perpetuated for years. So, let’s set the record straight!

TRUTH: When the Bank of Canada adjusts interest rates, it does affect interest rates of financial products. However, only interest rates for short-term financial products—things like car loans, credit cards, etc.—are directly affected by Bank of Canada interest rate cuts or hikes. Meanwhile, 10, 15, 30, and 40-year fixed mortgage loans are considered long-term financial products. As such, the Bank of Canada’s decisions do not directly influence fixed mortgage rates.

TRUTH: Though Bank of Canada rate cuts have no direct influence on fixed mortgage rates, the Bank of Canada’s decisions do directly sway one type of mortgage loan: Adjustable rate mortgages (ARM), which are also sometimes referred to as variable rate mortgages, IF the ARM is specifically stipulated as being tied to the prime rate.

TRUTH: Fixed mortgage rates are based on mortgage bonds (sometimes called mortgage securities), NOT the 10-year T-bill. Therefore, what actually has a direct effect on a mortgage rate increase or decrease is the buying and selling of mortgage bonds.

TRUTH: Though Bank of Canada rate changes do not have directly influence fixed mortgage rates, they can have a Domino Effect on fixed mortgage rates. How so? Well, the purpose of the Bank of Canada’s rate adjustments is often to increase or decrease consumer spending. For instance, when interest rates are cut, the goal is to increase consumer spending. As a result, investors speculating that the Bank of Canada’s tactic will work pull their money out of the bond markets (which are less volatile, low return investments) and put their money into stocks because they believe they can make greater profits from their investment. When this happens, that can cause mortgage rates to fluctuate. Remember: Mortgage bonds / mortgage securities affect mortgage rates. If money is cashed out from mortgage bonds, rates will increase. Conversely, if the monies are withdrawn from other types of bonds, mortgage rates may dip or they may remain unchanged.

So, what does all of that mean if you’re looking to modify or refinance your mortgage, or if you’re waiting for mortgage rates to change before you apply for a mortgage loan? First, it means that you should keep an ear out for what the Bank of Canada is doing regarding interest rate cuts and spikes ONLY if you’re interested in a variable rate mortgage—which would not be ideal for most consumers in the current economy. However, if you prefer a fixed rate mortgage, it means you can (and should) stop wasting your time tracking the 10-year T-bill and keeping tabs on the Bank of Canada. Instead, keep watch on what’s happening with mortgage bonds so you’ll know when mortgage rates are where you want them!

Mauricio Navarro is the writer and adviser to MortgageRatesInCanada.ca – a comparison website for Canadian mortgage rates. Also, Mauricio is involved as an investor in CompareMortgageQuotes.ca – a website to compare mortgage rates & receive instant mortgage quotes.