Hot summer, cooling economy and low mortgage rates..

It’s been a slow week for mortgage news.. but that’s okay.. when it comes to interest rates, boring is good!

Mortgage rates are remaining low as the Economic data around the world is still not great.

Fixed rate mortgages are hovering at just over 4.00% for  a 5 year term… still in historical low territory and well below the 25 year average of 8.25% for posted rates (discounted rates are approximately 6.75%).

Variable rate mortgage continue to be a favorite.. and why wouldn’t it be… under 2.00% rates, fixed prepayment penalties of 3 months interest  compared with Fixed rate penalties of 3 months interest or Interest Rate Differential which have been as higher 8, 9, 10, 13 months interest or more… Yes, from your major Banks…

Hybrid mortgages are the hot product lately..l saw some stats stating they have become more popular… but be careful.. these products tend to have limitations and restrictions that can cost you dearly in the future….

Remember, a Mortgage is more than just the rate… Rate is the single biggest factor that affects your overall cost,  but it’s not the only thing…

One more tip… any long-term contract has a price.. and the price is usually more expensive than we think.