Spring Update
Hi Everyone, hope all is well! The sun is shining in BC and Vancouver is heating up (finally). It’s been a while since I’ve had the pleasure of checking in. Though I plan to do keep doing monthly blog posts, I will be putting more emphasis on my videos. The online videos (Mortgage Mike TV:) will be similar to the blog, just without the written component. I feel these are a little more interesting to check out as well as quicker to get info. With that being said I hope to keep you informed through as many forms of media possible.
Social media has taken the world by storm and many folks are now regularly using twitter, facebook, etc. to communicate. I think these tools are great and an excellent way to network and stay in touch. Hopefully one day we can find a way to eliminate email, or at least figure out a way to make sorting through it easier and faster. Our “detached” culture is simply hooked to the internet, and it appears to be a way of life whether we like it or not. Of course the phone is also a handy tool – call me anytime.
OK, back to MORTGAGES. This is arguably the best time in history to get a new mortgage. If you compare buying a house today versus a year ago it is way cheaper now. How much cheaper you ask? Well, factor in a 20% decline in home prices across the lower mainland and 30% lower interest rates and it’s huge. Your overall monthly payment could be 30-50% lower than before, so affordability is much better now. First time buyers can actually enter the market now and have mortgage payments basically the same as rent. So why keep renting? Well, the real estate market could go down a little further, but interest rates will be going up in 1 or 2 years (very likely). The key is to find a place you like and can afford where you plan to live for a while, and you will be fine in the long run.
We in the mortgage business are steady these days thanks to many people choosing to refinance, as well as first time buyers entering the market. If you are in a fixed rate mortgage at the moment there is a good chance it could be worth your while to look at doing an early refinance. As long as the interest/payment savings outweigh the penalty (for breaking term) it will likely be worth your time and energy to set up. I can quickly figure out whether it’s feasible for you based on your unique situation. Email me your current principal balance, interest rate, and penalty you will have to pay and it’s very easy to calculate.
Rate update – as of today 5 year fixed rates are available as low as 3.59%, and a great new 21 month special at 2.90% is available. Lots of great deals out there, lets talk to see what we can do for you.
Until next time.. enjoy the spring!
