So there is a lot of conversation that 5 year mortgages are going for as low as 2.94% and 2.99%
Well thats true for some Lenders. The thing that you need to know is that many of these offers are for what we call Quick Close deals.
Here is an example. Lender A(Big Bank) will offer a rate of 2.99% for a 5 year mortgage as long as it meets the following Quick Close conditions.
The deal must close in 30 days and secondly it must be an insured mortgage.
Thats a lot of restriction. Most Real Estate transactions take as much as 45-90 to close and often the client has 20% down and doesnt need to insure.
I dont mean to say that you cant get 2.99% without restrictions however, the going rate at most Lenders for a 5 year mortgage is 3.09%. At 3.09% you are getting all the flexibilty, all the bells and whistles, a First Class Mortgage
Let your Mortgage Broker do the shopping for you and make sure they explain all the conditons.
Theres never been a more important time to have a Mortgage Broker relationship!
Bob
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