Rates game or rates gain? You decide.
BMO announced today their 5 year closed mortgage rate is 2.99
Has the great race to the bottom begun?
I’m betting many bank managers got many calls from many customers about many mortgages today.
Low rates are great for borrowers. Not so much for investors. Being on the borrowing side of the equation, I’m quite delighted at the prospect as my mortgage rate is at 5.16 and I’m almost two years from renewal. That big a swing means that even with a penalty, it might be worth moving my mortgage to benefit from a lower rate. Wether or not I do will first depend on that call to the bank manager.
If you’re curious, please call your financial institution or ask for the advice of a mortgage broker you trust.
I suspect this is only the beginning. Spring is home buying season it seems and banks need to poach each other’s customers. In light of sequestration in the US and the world economy, I can’t see rates going up anytime soon. But I’m no magician. All I know is that the more I know, the better off I am. So go ahead. Make the call. You’ll know what you need to do.
And speaking of knowing stuff, I found this today on the Huffington Post – amazing facts about economics. Pretty amazing stuff. Consider tidy number 11. Start with a dollar. Double it every day. In 48 days you’ll own every financial asset that exists on the planet — about $200 trillion. Maybe I should be have been doing that instead of this debt defying blog?