Prime Mortgage Rate
What is prime mortgage rate? How does it affect you? How do you find this out? Many people want to know the answer to these questions when they are getting ready to buy a new home. If you know what it is before you buy a home, you will have more bargaining power, and you will get the loan that you need at a better rate than you might if you didn’t know what the prime mortgage rate was.
First of all, let’s explain what prime mortgage rates are. A prime mortgage rate or the prime lending rate is the interest rate on loans that are made to borrowers with excellent credit. Some lenders use a variety of different terms for prime mortgage rates. Some lenders may express their mortgage rates as a percentage above or even below prime mortgage rates. Other lenders simply call their interest rates prime. Regardless of the term used to refer to the prime mortgage rate, it is the interest rate on any mortgage that is higher than or below the prime mortgage rate for an adjustable rate mortgage.
The prime mortgage interest rate can be a major factor in your mortgage decision. You should look at your Canadian prime mortgage rate history to see how it has done in the past. When you are comparing your Canadian mortgage interest rate with other lenders, it is important to note the time frame that you are comparing. The time frame refers to the length of time that you have taken to build your current mortgage.
The most important thing to remember when comparing your prime interest rate with other lenders is that the prime mortgage rate that one lender will offer you is actually just the average of all of the prime interest rates that any of their lenders will charge you. This means that there is not one specific time that your prime interest rate will be compared with another lender. For example, some lenders may decide to charge a higher prime interest rate during an economic slump and some lenders may decide to charge a lower prime interest rate during a time period when the economy is booming. During a rocky time for many lenders, they will likely charge more prime interest rates. They do this because during these difficult times, their money making opportunities are limited and they need to make up for it somewhere else.
In order to get an accurate prime mortgage rate, it is important to look at your past six months of total income. In order to do this, you can calculate your income using the following factors: take your yearly income, and your expenses, and then divide it by your total annual expenses. This tells you how much disposable income you have after expenses. After you have figured out your disposable income, subtract it from how much you make after expenses. The number that you get will be your prime mortgage rate.
Fixed-rate mortgages are different from adjustable-rate mortgages. With fixed-rate loans, the interest rate remains the same for the entire life of the loan. With adjustable-rate mortgages, the interest rates can vary over time and vary with market fluctuations. For example, if the prime mortgage rate drops by one percent, lenders may reduce the interest rates on some of their adjustable-rate loans by one percent. However, if the prime rate continues to remain flat, they may increase the interest rates on all their variable rate loans by two percent.
Lenders prime rates by using a variety of formulas that include historical data and current interest rates. These formulas are made based on historical figures as well as current interest rates. While these formulas can make a great deal of sense, they are not subject to change without the expressed prior written approval of the lender or borrower.
Many people are unaware that there are prime lending rates available to them even when they are facing a financial hardship. The key is to shop around and compare many mortgage offers before making any decisions. Be aware that although interest rates are low when you are suffering a financial hardship, they may not remain so. Many homeowners who were able to refinance when their mortgage rates were low, have been unable to do so when interest rates have risen. For this reason it is important that homeowners stay alert for the prime rates and do not be reluctant to apply for a loan even when interest rates are high.