To answer it briefly.....not a whole bunch different then whats out there already. I'm sure you've heard of the hype going along along with all of these changes coming about to the mortgage laws and what not. The truth is, 35year amortizations are being cut back to 30year. Thats the really only big change. How does that affect you as a buyer? Depending on the amount of the mortgage, around 100bucks a month. Is it a really big deal? Not so much to me, as I think they should do away with 30year amort's as well and go back to the conventional 20-25years as a manditory.
Are interest rates going to climb? Probably.....they can't stay at these low's for ever. Does that mean everyone should lock in their rates because it could rocket to a whole other level? No.....In my opinion, the banks aren't dumb. There is this five year cyle of up's and down's of interest rates (hence most terms sold are 5yr closed mortgages, go figure hey?) Generally speaking, the rate at which you signed your papers 5yrs from now, will be relatively close to where there were when you took that mortgage. (Granted it went up a little, came down a little, but relatively close.
So for me? Floating variable all the way. Right now 2.25% is a lot lower than the average 4,5% 5yr fixed>
Until next time.....