Buying a Home

Jun 10 Rates are Climbing…It's OK

Posted by: The Mysterious Monster

It’s been a busy few weeks…rates have been climbing and a lot of clients have been calling wondering what to do next. My response is pretty quick, “Yeah rates are up so now you can save money!” How? Well, if you have a mortgage rate at 5% – 5.5% now that rates are on the way up you may be able to save your Interest Rate Differential (IRD) and only pay 3 months penalty.

IRD is a term the banks like to toss around to help make things confusing for consumers. It is in essence a formula they use to calculate the penalty for breaking your mortgage. It is amounts to the difference between your old rate and current rates for your remaining term.

Feel free to contact me if you would like to know more.

One thought on “Rates are Climbing…It's OK

  • My mortgage renewal is June 2014 of this year. What is the current mortgage rate at this time for 5 year fixed.

    My contact number is 647-390-9618.

    Thanks

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