Interest rates: Signs of anxiety

Globe and Mail- Banks are driving up mortgage rates much faster than anticipated, sparking a massive outbreak of confusion among consumers.

It’s an outbreak that has a high degree of contagion – advice from well-meaning friends, relatives or colleagues often seems to make the symptoms worse.

Part of the problem, experts say, is that every borrower’s situation must be evaluated individually.

For instance, it makes sense for a chef with little retirement savings to lock in the cheapest rate going. But that could be a bad move for a Bay Street financier who might want to pay down a chunk of her mortgage when she gets her bonus next year.

One of the cheapest long-term fixed mortgage rates right now is Bank of Montreal’s discounted five-year fixed-rate mortgage. But it comes with strings. Customers who sign on must agree to a term of 25 years or less, and their prepayment options are limited. The only way to break the mortgage is to sell the house…

Interest rates: Signs of anxiety – The Globe and Mail

Refinance or stand pat? Terms are key

 Times Colonist, Victoria, BC – All mortgages are structured so payments in the early years are primarily interest charges: Very little principal is shaved off unless you make sure payments are high enough and frequent enough that a good chunk — perhaps 50% rather than the usual 5% or 10% — is going straight to principal…

Refinance or stand pat? Terms are key