After The Rate Hike.....What's Next???
June 5, 2022 | Posted by: Sharon Patton
After the Rate Hike…….What’s Next?
Variable-rate mortgages and lines of credit will see higher rates and modest payment increases. Fixed-rate mortgages - which are based on the bond market- had already been trending upward, although if you have a fixed mortgage, you aren't affected until it is time to renew,
Keep in mind that this is a very small increase, and we are still in a moderate rate environment. We've also seen increases before only to see them decrease again. But rates have risen, so here are some answers to the questions I have been getting.
Should I jump into the market now?
Actually, my advice is always the same: buy when you are financially ready. Don't jump the gun because 'rates' may go higher. But by all means, if you are thinking about buying, I can arrange a pre-approval so you are protected from rate increases while you shop around.
Should I lock in my variable rate mortgage ASAP?
That depends. Your new rate with the hike is probably still significantly less than the current 5-year fixed rates, and you'll still likely be paying less if there is another 0.25% increase. If it is keeping you up at night, let's talk about your conversion options.
What if my mortgage is coming up for renewal?
Don't feel rushed or pressured by a renewal letter or call. Let's discuss your options. We will review your renewal offer together and shop around to see if it is really the best deal available.
If you would like to explore your options let’s chat today!
Follow us on Facebook and Instagram for more mortgage information and tips.
I look forward to connecting with you soon.