5-year 2.89% fixed rate or 2.60% (prime - 1.1%) variable?

[stuck]

@panchopeligro If you dont mind since you're being renewed, could you simply ask your agent if he can give the same rate to a friend? I assume since you know the agent maybe he can give the same rate, pls let me know, I'd appreciate your help

 

[moorland]

@panchopeligro You sure it isn't these plus prime/the lending rate?

I'm with the other comments, where and how are you getting offered these?

 

[opinionsareopinions]

@moorland Yeah because I am breaking my mortgage to sign up for 5 years.

 

[panchopeligro]

@opinionsareopinions I got it from my current lender, First National. They did say they secured the rate for me back in February though.

 

[panchopeligro]

@moorland Unless myself or the agent is mistaken, this is what they are giving me as far as i can tell. Offer is from my current lender. They said they secured the rate back in Feb. I just haven't pulled the trigger. Lender is First National.

 

[trinichristiannudist]

@panchopeligro Seems like a troll but obviously take the 2.89

 

[panchopeligro]

@trinichristiannudist Thanks. I'll take your advice. Not trolling. Just genuinely not the most informed on housing and mortgage stuff so I figured I would ask here.

Offer is from my current lender. They said they secured the rate for me back in Feb and will still give it to me. Hopefully I'm not mistaken though. All the comments have me second guessing what I was told.

 

[cantstandya]

@panchopeligro I’m a variable guy in general. There is generally a spread of around 1.5-2 percent between fixed and variable - that’s the bank’s cost for assuming the risk of massive increases. Or, from your viewpoint, you are buying insurance against increases, and the cost is that spread.

At less than 0.5 percent in today’s climate, you would need to go fixed. I expect we will land about 1 percent higher in total over the next 2 years before things inch downwards again, ending roughly where we are right now.

I do think those rates are wrong, though.

 

[panchopeligro]

@cantstandya Thanks for the reply. I hope I understood my agent correctly. But as far as I can tell, in email correspondence she said 2.89, 5 year fixed.

It is with First National. The agent also mentioned the rate was secured back in February. Honestly, this is my first time renewing, so I didnt know they did that sort of thing.

I've taken your advice and emailed her that I will go fixed. Hopefully there is no mistake and I get the rate.

 

[cantstandya]

@panchopeligro I think you made a good choice, Op. I generally prefer the risk-reward path of variable, but right now, there's a lot of question about the "top" of interest rates, and not a lot of question about the "bottom".

In other words - nobody can say they feel totally convinced that rates won't go up by 2-3 percent in the next 5 years, but most folks would agree that it's highly unlikely that we'll go down by 1 percent in the next 5 years. In that climate, paying a half a point of interest is the smart thing to do, even if it costs you a few hundred dollars per year.

 

[panchopeligro]

@cantstandya Agree. Thanks again for the input.

 

[pastorjdh]

@panchopeligro Assuming that fixed rate is real. It’s a no-brainer to take it.

 

[panchopeligro]

@pastorjdh Thanks. I'll take your advice.

 

[kiril7]

@panchopeligro Theyre blending. Thats not a new rate

 

[veritas238]

@panchopeligro Where are you getting a 5 year fixed at 2.89%?

 

[panchopeligro]

@veritas238 First National. They are my current lender. They said they secured the rate for me back in Feb.

 

[mikemu777]

@panchopeligro Yeah right lol

 

[panchopeligro]

@mikemu777 Its true, unless the agent is mistaken. I just emailed her saying ill do fixed at 2.89. I guess we will figure out later if there is some sort of mistake.

 

[mikemu777]

@panchopeligro Did you get this rate?

 

[panchopeligro]

@mikemu777 I did. It ended up being a rate they secured for me back in February. Offer was valid until today so I took everyone's advice and accepted the fixed rate.