Home Mortgage Rates

Term Rate
Prime 2.75%
Variable 2.05%
1 Year 2.54%
3 Year 2.90%
4 Year 3.79%
5 Year 3.69%
10 Year 5.35%

Qualifying Rate

Sept 7 5.39%

Current Inflation

July 1.8%

5 Year Bond Yield

Sept 7 2.08%

 

Special conditions apply
Mortgage Rates subject to change.

 

media section

January 27, 2010 – 7:00am to 8:00am (6:45am registration)

Langley Chamber of Commerce Event

Finding your niche and branding yourself are key when marketing your business but there are equally important topics requiring attention that many business owners forget. Working efficiently allows more time to market yourself and keep on the radar of your potential clients. Harnessing Social media, your database and properly using email campaigns will significantly add to your future success. Join me for an hour of interactive discussion on above topics.

Location: ABC Country Restaurant
5978 Glover Road, Langley
CLICK HERE for Google Maps

Book a seat by email: events@langleychamber.com
Book a seat by phone: 604-530-6656

Reservations and Pre-Payment Required
CLICK HERE to download a copy of the reservation form

www.langleychamber.com

Transcription:

Introduction

Okay. Good morning. You guys can hear okay me in the back? My name is Jessi. You can tell by the five times I mentioned it in the slide. My presentation is about 45 minutes to one hour. I prefer for my smaller presentations to be as interactive as possible so if you have any questions, don’t hesitate. I’m going to cover a lot of topics today and might go a little bit quickly. So please let me know if I’m going a little quick. It’s a pleasure to meet you all. Thank you to the Langley Chamber of Commerce for bringing me out.

(View Video)

An excellent way to force an increased payment while protecting yourself from raising interest rates is the frozen mortgage payment available for variable rate mortgages. This option is hard to find but a good broker will know where to look. Let’s take a look at today’s (Jan 15, 2010) frozen payment:

  • 2.05% Current VRM rate at Prime (2.25%) minus 0.20%
  • 3.89% Current frozen payment

Using a $300,000 mortgage and 25 year amortization, the following happens:

  • Current VRM payment is $1,277.60 and it floating at Prime minus 0.20%
  • Current frozen payment is $1,560.22

With a frozen payment, the difference in payment is taken off your principle balance. In this calculation, the amount $282.62 is coming off your principle every month. When the Prime rate increases (and it will eventually), that spread decreases. When the interest rate exceeds your frozen payment you are protected but are now paying less of the principle per month. Paying less per month obviously isn’t a good thing but this option is here for your protection. When the interest rate increases to this point, I suggest putting aside month to dump in the principle annually or requesting a monthly payment increase. Of course you would only do this if your budget permits such action. In the event interest rates skyrocket, you will receive a warning call from your lender that your payment will have to increase otherwise your amortization will automatically increase.