• Variable versus Fixed What Should a Borrower Do?

    Jencor Mortgage    |   

    Categories: Jencor , Mortgage , Variable

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    During most of the last 28 years, choosing a 5-year variable at any random date would lead to lower interest costs for the following five years. The thing to understand is the last 28 years we have been in the greatest bull bond market in the history of the world, that means the greatest interest rate decline over the longest period ever. The last 28 years were a great time to have a variable rate mortgage. The question now is, what will be the average variable interest rate for the next five years?   The first thing for a borrower to…

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  • Is A Variable Rate mortgage Wise in Today's Economy?

    Jencor Mortgage    |   

    Categories: Jencor , Mortgage , Variable

    Ever since the variable rate mortgage was introduced, the question became do I choose the fixed or variable rate mortgage.  With the recent rate increases borrowers will usually choose the security of a fixed rate mortgage.  This does, however come with a premium as variable rate mortgages are generally 0.75% less than their fixed counterpart. On a $350,000.00 mortgage this translates to a payment difference of about $135.00 per month. You as the borrower can take the lower payment and use it for purposes such as:  Debt reduction -  Paying down higher interest rate debt such as credit card, lines of…

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