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