Currently, I am experiencing a huge demand for the variable closed product. This rate is currently @ 2.25% which is Prime -.75%. It will float with the economy … no ceiling on this product. I qualify my client @ the benchmark rate of 5.34%. This will just simply protect you if the rate does increase you will not feel like you cannot afford it. If you break this contract you will pay only 3 months interest penalty.
The fixed terms-if you want the 5 year fixed rate mortgage you will have the peace of mind that this rate will not change for the next 5 years. If you break this contract then you will pay the greater of the 3 months interest penalty or the IRD. (interest rate differential)
Lisa J. Gryba