It is likely you will need the services of a lender when purchasing your home. Once your DALE MUNDI agent understands you and your home purchase requirements they will recommend that you talk to a lender to determine your price range. Your lender will begin the process to pre-approve you for a mortgage, which will include verification of income and down payment (among other details).
Searching to find the right home is a process you should undertake thoroughly and carefully, and you should be just as diligent in sourcing the best loan for you.
The past few years have seen historically low mortgage interest rates — the lowest in decades — leading some to call them “once-in-a-lifetime rates.”
Consider, for example, that in the late 1980s, five-year, fixed rate mortgages were more than 12%, and even in the late 1990s, they were almost 7%. In 2009, you could get the same mortgage for about 4.5%, a five-year variable rate mortgage at 2.25%, and a five-year fixed rate at 3.99%.
Perhaps these rates really are opportunities of a lifetime.
This, of course, raises an important question for home buyers: should they lock in at these rates, or is a variable rate the better option?
This is an excellent question, but it is not easily answered. It depends on your comfort level with rate fluctuations.
If the bank rates decrease, then it’s in your favour. If the bank rates increase, your cash flow will be restricted.