Ryan here with City Wide Financial, talking about what is an adjustable rate mortgage strategy. This is one of the more common questions we’re asked – fixed or variable, which is better?
If you are asking yourself this question, a strategy I encourage you to think about is taking an adjustable rate, but fixing your payments at what they would be at the higher, fixed rate level. If you’re considering taking a fixed rate, you can obviously handle that payment, so why not fix your payment at that level & pay down boatloads of principle while the variable rate is so low.
A good variable rate is around 2.25%, about 2% below today’s best fixed rates. On a $300,000 mortgage over 30 years, your variable rate payment is over $300 lower than the fixed payment. So if you take the variable rate & fix your payments at the fixed rate level, in year 1 you’ll pay down $4000 in more principle than you would normally.
Now, of course, the variable rate fluctuates & as it increases, the savings won’t be as significant but my goal here is to illustrate the kind of savings you’ll see. Also, eventually that fixed payment likely won’t be enough to cover your variable payment, so at that time you’ll need to fine tune your strategy, but that is why you need someone committed to managing this mortgage for you. Taking a variable rate opens your mortgage up to a lot more risk & anyone thinking of taking a variable rate with their bank is crazy because they do nothing to manage your mortgage over the term.
A lot can happen in 5 years time, particularly in the mortgage world, is money, so it’s important to have someone advising you throughout the life of your mortgage, making sure you’re saving as much money as possible.
If you’d like to hear about more of my mortgage strategies, or to see how much you can save by taking the adjustable rate strategy, contact Ryan at City Wide Financial.
Ryan Zupan
Mortgage Planner
604.250.6122
ryan@mortgagecentrebc.com
ryanzupan.com
https://ZupanMortgage.com/wp-content/uploads/2020/05/Citywide-logo.png00adminhttps://ZupanMortgage.com/wp-content/uploads/2020/05/Citywide-logo.pngadmin2011-04-14 08:59:582011-05-27 16:15:44How to best take advantage of today’s low variable rate?
Ryan here with City Wide Financial, talking about accelerated payments & why every mortgage holder should be using them.
Mortgages are a lot like having a bratty teenager: the more attention you give them, the less money they’ll cost you. Mortgages respond very well when there is someone actively engaged in managing them. Whether that’s me, whether that’s you, part of giving your mortgage more attention is making payments more frequent than regular monthly. Accelerated payments are either semi-monthly, bi-weekly or weekly. They have the effect of paying off your mortgage up to 5 years ahead of schedule. If you’re taking a 30 year mortgage, choosing accelerated payments are almost the same as choosing a 25 year mortgage – big savings for doing very little.
So what are they? Well with bi-weekly, for example, we take your monthly payment, cut it in half & arrange for you to make that payment every 2 weeks. Now, because there are 52 weeks in a year, that’s 26 bi-weekly payments, which is the same as 13 monthly payments. So, accelerated bi-weekly payments effectively squeeze in an extra month of payments into the calendar year.
If you have a $300,000 mortgage over 30 years at 5%, accelerated bi-weekly payments will pay off the mortgage in 25 years & 3 months, nearly 5 years earlier. Not only that, but you’ll pay off nearly $10,000 more principle & save over $50,000 in unpaid interest. Big savings.
Everyone’s mortgage should be on accelerated payments. We can match the mortgage to coincide with your paydays If you’re paid semi-monthly & don’t want the confusion of paying every 2 weeks, contact me & I’ll explain how we work around that. Otherwise, that will be a topic of a later blog.
If you, any friends or family would like to know how much accelerated payments could save you, contact me, I’m Ryan at City Wide Financial.
Ryan Zupan
Mortgage Planner
604.250.6122
ryan@mortgagecentrebc.com
https://ZupanMortgage.com
https://ZupanMortgage.com/wp-content/uploads/2020/05/Citywide-logo.png00adminhttps://ZupanMortgage.com/wp-content/uploads/2020/05/Citywide-logo.pngadmin2011-04-12 12:18:272011-05-27 16:16:10How To Take 5 Years Off Your Mortgage.
Demand for detached homes continues to be strong across Greater Vancouver, with particularly high sales volumes occurring in Richmond and Vancouver Westside.
For the past two months, the number of properties listed for sale and those sold on the Multiple Listing Service® (MLS®) in Greater Vancouver outpaced the 10-year average in both categories. From a historical perspective, February’s 3,097 home sales outpace the 2,742 home-sale average recorded in the region over the last ten years.
“We saw an increase in demand across our region last month as more buyers entered the market in advance of the spring season,” said Jake Moldowan, president of the Real Estate Board of Greater Vancouver (REBGV). “The intensity of this activity varied between communities. Our statistics tell us that single detached homes in Richmond and the west side of Vancouver remain the most sought after properties in our marketplace.
Between November 2010 and February 2011, the MLSLink® Housing Price Index (HPI) benchmark price of a detached home in Richmond increased $190,739 to $1,099,679; in Vancouver West, detached home prices increased $222,185 to $1,850,072. In comparison, detached home prices across the region increased $51,762 between November 2010 and February 2011 to $848,645.
How to best take advantage of today’s low variable rate?
/in fixed vs variable, mortgage advice, mortgage strategies /by adminRyan here with City Wide Financial, talking about what is an adjustable rate mortgage strategy. This is one of the more common questions we’re asked – fixed or variable, which is better?
If you are asking yourself this question, a strategy I encourage you to think about is taking an adjustable rate, but fixing your payments at what they would be at the higher, fixed rate level. If you’re considering taking a fixed rate, you can obviously handle that payment, so why not fix your payment at that level & pay down boatloads of principle while the variable rate is so low.
A good variable rate is around 2.25%, about 2% below today’s best fixed rates. On a $300,000 mortgage over 30 years, your variable rate payment is over $300 lower than the fixed payment. So if you take the variable rate & fix your payments at the fixed rate level, in year 1 you’ll pay down $4000 in more principle than you would normally.
Now, of course, the variable rate fluctuates & as it increases, the savings won’t be as significant but my goal here is to illustrate the kind of savings you’ll see. Also, eventually that fixed payment likely won’t be enough to cover your variable payment, so at that time you’ll need to fine tune your strategy, but that is why you need someone committed to managing this mortgage for you. Taking a variable rate opens your mortgage up to a lot more risk & anyone thinking of taking a variable rate with their bank is crazy because they do nothing to manage your mortgage over the term.
A lot can happen in 5 years time, particularly in the mortgage world, is money, so it’s important to have someone advising you throughout the life of your mortgage, making sure you’re saving as much money as possible.
If you’d like to hear about more of my mortgage strategies, or to see how much you can save by taking the adjustable rate strategy, contact Ryan at City Wide Financial.
Ryan Zupan
Mortgage Planner
604.250.6122
ryan@mortgagecentrebc.com
ryanzupan.com
How To Take 5 Years Off Your Mortgage.
/in mortgage advice, mortgage strategies /by adminRyan here with City Wide Financial, talking about accelerated payments & why every mortgage holder should be using them.
Mortgages are a lot like having a bratty teenager: the more attention you give them, the less money they’ll cost you. Mortgages respond very well when there is someone actively engaged in managing them. Whether that’s me, whether that’s you, part of giving your mortgage more attention is making payments more frequent than regular monthly. Accelerated payments are either semi-monthly, bi-weekly or weekly. They have the effect of paying off your mortgage up to 5 years ahead of schedule. If you’re taking a 30 year mortgage, choosing accelerated payments are almost the same as choosing a 25 year mortgage – big savings for doing very little.
So what are they? Well with bi-weekly, for example, we take your monthly payment, cut it in half & arrange for you to make that payment every 2 weeks. Now, because there are 52 weeks in a year, that’s 26 bi-weekly payments, which is the same as 13 monthly payments. So, accelerated bi-weekly payments effectively squeeze in an extra month of payments into the calendar year.
If you have a $300,000 mortgage over 30 years at 5%, accelerated bi-weekly payments will pay off the mortgage in 25 years & 3 months, nearly 5 years earlier. Not only that, but you’ll pay off nearly $10,000 more principle & save over $50,000 in unpaid interest. Big savings.
Everyone’s mortgage should be on accelerated payments. We can match the mortgage to coincide with your paydays If you’re paid semi-monthly & don’t want the confusion of paying every 2 weeks, contact me & I’ll explain how we work around that. Otherwise, that will be a topic of a later blog.
If you, any friends or family would like to know how much accelerated payments could save you, contact me, I’m Ryan at City Wide Financial.
Ryan Zupan
Mortgage Planner
604.250.6122
ryan@mortgagecentrebc.com
https://ZupanMortgage.com
February Real Estate Stats
/in Misc. /by adminREBGV REPORTS INCREASED HOUSING DEMAND IN FEB.
Demand for detached homes continues to be strong across Greater Vancouver, with particularly high sales volumes occurring in Richmond and Vancouver Westside.
For the past two months, the number of properties listed for sale and those sold on the Multiple Listing Service® (MLS®) in Greater Vancouver outpaced the 10-year average in both categories. From a historical perspective, February’s 3,097 home sales outpace the 2,742 home-sale average recorded in the region over the last ten years.
“We saw an increase in demand across our region last month as more buyers entered the market in advance of the spring season,” said Jake Moldowan, president of the Real Estate Board of Greater Vancouver (REBGV). “The intensity of this activity varied between communities. Our statistics tell us that single detached homes in Richmond and the west side of Vancouver remain the most sought after properties in our marketplace.
Between November 2010 and February 2011, the MLSLink® Housing Price Index (HPI) benchmark price of a detached home in Richmond increased $190,739 to $1,099,679; in Vancouver West, detached home prices increased $222,185 to $1,850,072. In comparison, detached home prices across the region increased $51,762 between November 2010 and February 2011 to $848,645.
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