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Dear ,
First things first, before reading any
further, PLEASE
vote
for us for top website -- Best Internet Presence -- in the mortgage
broker industry.
We are also up for Best Customer Service by an
Individual Office
but that is purely a judging panel decision.
We'll find out the results by this time
next month and hopefully we'll be bringing back some hardware from
Toronto!
OK, so with that out of the way we can get
to the really
important stuff; your mortgage!
With the Olympics now over, the mortgage
market has become
extremely competitive. It is our credibility,
reputation
and the ability to offer the best mortgages in the business that is
winning
us a large chunk of new clients.
Thanks again to you, our loyal
customers for
making this happen with your fantastic referrals. It's shaping up to be
another record year for us!
Keep on reading to find out why we think it is important to lock in
a current variable rate mortgage at today's all-time low fixed rates ... and for the March 2010 Vancouver Real Estate Update.
Sincerely,
Mike Averbach and Justin Blacklock
PS ... Please join us on our Face Book Fan Page! Ask questions and make comments. We look forward to hearing from you.
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Why You Should Lock In
In today's edition of Averbach News, we're going to talk about the importance of
locking in
a current variable rate mortgage at today's all-time low fixed rates.
Long story short:
if you
have had a VRM at anywhere from Prime minus .60 to .90 over the last 3-5
years,
your average rate has been in the 3.6 to 3.9% range. If
you
could guarantee that rate range for the next 5 years, why wouldn't you!?
We know that rates are going to rise aggressively.
Prime
should peak sometime in 2012 though we could see as much as a 1.5%
increase this
year alone. So, again, why wouldn't you lock in now at 3.69 to 3.99%? Do
we
need to sing that Kenny Rogers song again? Pat yourselves on the back
for
choosing variable prior to the downswing and cash in your chips. For if
you don't,
you will most certainly be locking in at a fixed rate well above
today's rates.
We
fear that many of you have adjusted your lifestyle to your
ultra-low payments but have not yet accounted for an increase. Are you
prepared
for a 2% jump in your interest rate? Do you know what that will do to
your
payment? Take a few moments to work it out at your current amortization
with our sophisticated online calculator. Well? Are you ready?
We also want
to encourage ALL OF YOU who have a fixed rate mortgage currently above
4.5%, to
call us ASAP for a 120 day rate hold for a refinance.
As long as
mortgage rates
stay the same, it is highly unlikely that you will see any benefit to
refinancing because of the high penalties. There IS a
benefit to having a fresh 5 year term since we cannot know what the rates will be
when
your current term comes up. One thing we are sure of is that rates will
be
HIGHER. Again, it's important to understand that this is not to persuade
you to take on more debt. On the contrary. While you will add a penalty
onto
the current balance you carry, at the end of the next 5 years, you
should be
thousands of dollars ahead had you stayed the course in your current
term or
if you have to renew at a rate much higher than today.
As mortgage
rates go UP, the refinancing penalties go down. This is called IRD or
Interest
Rate Differential. It's an intricate calculation based on your current
balance, rate and months remaining. Sometimes this penalty amount can be
thousands!
IF you take
action now you could benefit greatly when mortgage rates start to go up
again.
Currently, some lenders still have their 5 year fixed rates in the 3.69 -
3.89 range (see our rates page). These rates have never before been
offered and
may never again...in our lifetime.
What we do
is get you the BEST rate we can and lock in the offer. Depending on the
mortgage company, we can lock in for up to 4 months and can often renew
for
another 4 months at a time. Then we wait. At some point the mortgage
rates are
going to go up again.
At the point
where you are actually saving enough money to make the transaction
worth while,
we finalize your refinanced mortgage.
IN A
NUTSHELL:
1. You lock
in a rate-hold today via a pre-approval application while the interest
is low.
2. You wait until
the mortgage rates start to increase.
3. When the
mortgage rates go UP, your penalty for refinancing goes DOWN.
4. When the
transaction generates a positive cash savings for you ... we refinance at
the lower rate, with the lower penalty.
Mike Averbach, AMP
Mortgage Planner
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March's Market Update
Every month we get a market update from
our friends at Macdonald Realty; Simon Clayton, Kristie Marsden, Jason
Low, Sandra Ens, Jason Feinstadt and Jenny Stephanson.
In March's update: The Olympics are over. What is happening to the housing market?
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Averbach Mortgages
604-736-1855
We save you time. We save you money. We get you the you the best mortgage terms at the best interest rates possible.
If you are:
- purchasing your first home
- refinancing
- renewing an existing mortgage
- investing in real estate
- consolidating your debts
- experiencing current or past credit issues
We have the solutions that work for you.
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Mike Averbach
Averbach Mortgages |
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