If you currently have a variable rate mortgage, or an ARM, you may be wondering if it’s time to get a better deal. If you want to know what’s right for your situation, you need to speak with one of our Toronto mortgage brokers. We’ll be able to help you understand if a refinance is right for your situation, and how you can get one. There are so many different ways that you can get a better loan if you can fix your terms, so it’s always worth a look to see if it’s the right thing for you.
What is a Variable Rate Mortgage?
Variable rates, or adjustable rates, are a kind of interest rate term. Variable means that it will float up and down with the Prime Interest Rate set by the Bank of Canada (and other national banks in other countries). Interest rates right now are quite low, but if you negotiated the terms of your agreement before they were low it may be time to renegotiate. Whatever you do, you’ll want to make sure you speak with a Toronto mortgage broker to find out what your options are.
What is a Fixed Rate Mortgage?
Instead of a mortgage that floats up and down with the economy, a fixed rate mortgage stays fixed; this can change if you default on your payments or pay late and with other conditions that will be in your mortgage contract. By and large a fixed rate mortgage is the kind of mortgage that you want to get. You can change your ARM to a fixed rate or your fixed rate to an ARM. Speak with one of our Toronto mortgage brokers to see what kind of deal you can get if you want to refinance your mortgage.
Should You Convert?
If you want to be able to save more money every month and pay off your mortgage faster, converting to a fixed rate mortgage can be the ebst thing to do. Not everyone will reap the benefits of this kind of switch though, so it’s important to understand your options. Some people will benefit from this kind of a conversion. Right now interest rates are the lowest they’ve been in decades; interest rates should hold steady through 2014 but beyond that no one knows for sure. With a fixed rate mortgage your mortgage will remain fixed at that interest rate (so 5% for example for the next 30 years). You’ll be able to use more money to pay off your mortgage faster and spend less on interest payments.
How do You Convert Your Mortgage?
The first thing you’re going to want to do is speak with one of our Toronto mortgage brokers. We’ll be able to help you evaluate your situation, helping you to understand what is right for you. Some people can benefit greatly from converting their mortgages, others are better off keeping things the way they are. Speak with one of our Toronto mortgage brokers to find out how a mortgage conversion could help you save money today!