Tagui, we also have a variable rate here, which is really ARM or flexi rate (as you guys call it) and generally, it is lower as it fluctuate based on the current prevailing market rate and you can lock anytime whenever you feel the rate trend will going up.
Fixed rate on the other hand cushions the borrower from rate fluctuations, specially if the rates are expected to go up, that is, unless prevailing rates kept going down during the agreed period. As I said, I preferred closed fixed rate gaya kay Arlene, she has 30 yrs. fixed rate agreement, on my case, I was able to lock a good rate for 4 years. Here in Toronto, this does not necessarily mean I have 4 years to pay my house, only when the 4th year is up, with my remaining mortgage balance, I am free to renegotiate another rate with my banker or with whichever financial institution I choose. Monthly payments on the other hand are calculated based on agreed terms (years of payment) and agreed mortgage rates (either close or variable). Arlene, bihira dito nag-co-close ng more than 5 years fixed rate. Normally mas-maganda mag-renegotiate ng mortage rate every five years or so. 30 years is too long and too high a risk for banks, that is why it is generally offered at a higher rate (to cushion their risks). Mel, if you are planning to sell I think variable rate is the best for you, and don't sell within 5 years or less, lugi ka. Just make sure you can live in the place for more than 5 years to gather enough equity and profit from the sale. (As my REMAX agent advised).. Goodluck... and regards to all. Randy ... --- In [email protected], jun ramos <[EMAIL PROTECTED]> wrote: > Hi, Randy, pasingit lang.. if you're asking which one is cheaper, usually mas cheaper anf flexi-rate... fixed rates have high rates simply because if you want security, the lending company will put in a higher rate just to be sure they won't be on the losing end in the future. > > What you are buying when you avail of the fixed rate is the certatinty that the premiums will remain the same no matter what (syempre that would be more expensive). The flexi rate is cheaper simply because the rates are not guaranteed and that is usually an added concern to the client. :-) > > spurs <[EMAIL PROTECTED]> wrote: > parang adjusttable rate (ARM) yung kay Randy, iba lang ang tawag sa > kanila... > > arlene, im studying which one is more economical/practical between > ARM and fixed rate... it looks like if you don't plan to keep your > house for the duration of loan, (which is more likely as per study, > 70% keep their house only for less than 7 yrs, they get new or > bigger houses after that), ARM tends to be more beneficial (say 7 yrs > ARM) than the 20 or 30 yrs fixed rate if you will sell it in about 7 > yrs.... but if you plan to keep the house for 30 yrs, or 20 yrs, > (which is the duration of the loan), fixed rate is more > desireable... thats how i analyze it... ano sa tingin mo?? > > with that said, i might go with 7 or 5 yrs ARM... base sa stats kasi > eh baka ibenta ko din to get bigger houses later on in less than 7 > or 10 yrs... anyway, nga pala, hindi ko pa tinuloy yung pagbili ko > ng house... postpone ko na muna siguro mga oct or nov... i believe > builders give better deal during those times, year end, to catch up > to their inventory, accdg to my real estate advisor... > > spurs tonight... dito na sila sa SA... have u seen the last game? > was sooo intense diba... very tight... will they win game 6 tonight? > abangan...!!! > > > > > > --- In [email protected], "tribalknowledge" <[EMAIL PROTECTED]> > wrote: > > Dito kapag sinabing 30 years fixed rate, for 30 years yun lang ang > > rate mo. Pero meron ding mga adjustable rate mortgages. Kami 30 > > years fixed rate :(. Sa previous bahay namin, 15 years fixed rate > > lang yung loan namin. Kaya lang ngayon, mas malaki yung loan > amount, > > too risky for us na gawing 15 years lang yung loan. Kaya ang > > ginagawa namin, nag-eextra payment na lang kami every month. > > > > Here's an interesting calculator. Using this, you can find out > how > > much you're going to save in interest payment and the duration of > the > > loan payment by making extra payment: > > > > http://www.statefarm.com/apps/mortgage- > > calculators/Calc_Amort_Prepay.asp?PageId=Prepay > > > > --- In [email protected], "JCR" <[EMAIL PROTECTED]> > wrote: > > > Hi Arlene, > > > > > > Tawag dito fixed rate closed mortgage (my rate is locked for 4 > > years).. terms dito usually max of 25 years mortgage terms, wala > pa > > kong alam na umabot ng 30 yrs (too long). The house we got is > still > > in GTA (Greater Toronto Area), 3 mins. drive to subway & 10 mins > > drive to my workplace. makakaligtas na ko sa 75km drive daily!!! > > > > > > good luck sa vacation mo... miss ko na rin Janets food saka > > bilyaran sa uste! di ako nakagala last vacation (2004) busy sa > > wedding. > > > > > > Randy ... > > > > > > > > > ----- Original Message ----- > > > From: tribalknowledge > > > To: [email protected] > > > Sent: Sunday, June 19, 2005 10:17 PM > > > Subject: [4c-math94] Bob and Randy > > > > > > > > > Hi Bob! Pexer ka rin pala ha. > > > > > > Hi Randy! Congrats din on your new house! Sa Canada ba, ang > > term ng > > > fixed rate loans, usually 15 years and 30 years din? > > > > > > Okidoki, artichokey! > > > > > > > > > > > > > > > > > > Ask our other classmates to subscribe, tell them to send an > email > > to: > > > [EMAIL PROTECTED] > > > > > > > > > > > > > > > > > > ---------------------------------------------------------------- - > --- > > ---------- > > > Yahoo! Groups Links > > > > > > a.. To visit your group on the web, go to: > > > http://groups.yahoo.com/group/4c-math94/ > > > > > > b.. To unsubscribe from this group, send an email to: > > > [EMAIL PROTECTED] > > > > > > c.. Your use of Yahoo! Groups is subject to the Yahoo! Terms > of > > Service. > > > > > Ask our other classmates to subscribe, tell them to send an email to: > [EMAIL PROTECTED] > > > > > > --------------------------------- > Yahoo! Groups Links > > To visit your group on the web, go to: > http://groups.yahoo.com/group/4c-math94/ > > To unsubscribe from this group, send an email to: > [EMAIL PROTECTED] > > Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. > > > __________________________________________________ > Do You Yahoo!? > Tired of spam? Yahoo! Mail has the best spam protection around > http://mail.yahoo.com Ask our other classmates to subscribe, tell them to send an email to: [EMAIL PROTECTED] Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/4c-math94/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
