If you’re refinancing your home or purchasing a new one, you may be wondering what the current TD Mortgage rates are. Interest rates have been on the rise for the past year or so and with it, prices of homes throughout the country have risen. Now is a great time to refinance your home or purchase a new one. This is especially true if you’re able to qualify for a low interest rate. Interest rates will only go higher so you need to get your home loan refinanced while you can.
Many homeowners refinance because their old loans have been converted to a “interest only” loan term without any type of principal balance. In other words, they’re paying only the interest each month, without ever making a payment on the principal amount. While you might think this is a good idea, it often means that you’ll spend more money in principal payments than the original loan would have cost you. This is especially true if you have a large amount of credit card debt. These high costs on your credit cards will always eat into your monthly budget unless you go with a fixed-rate mortgage.
Another reason many homeowners refinance is to take advantage of the current low interest rates. Interest only mortgages are a risky proposition since they require the homeowner to pay interest each month, even if there’s no money coming in. On the flip side, a fixed-rate mortgage requires the homeowner to make payments each month and accrue a principal amount. Fixed mortgage rates are usually preferred by borrowers who don’t need to worry about rising interest rates and by borrowers who are able to lock in lower mortgage rates than they could on an interest only mortgage. For example, if you plan to use a special offer 5-year fixed rate mortgage and plan to stay in your home for at least five years, you can save a substantial amount of money on your monthly mortgage payments by choosing a fixed rate mortgage.
Homeowners who refinance to get low interest rates also often choose to do so because of the penalties that are imposed if the lender ever decides to raise rates. If the lender ever decides to raise the rate, the borrower has to give up a specified portion of their interest that is exempt from being raised. Also, homeowners may lose out if the posted rates are raised by two percent or more. With all of these penalties in mind, many homeowners are tempted to refinance just to avoid these problems. The best way to avoid having to deal with these pitfalls is to make sure you know everything there is to know about posted rates and fixed mortgage rates before you even consider a refinancing move.
One of the most important factors that go into determining where you’re going to get your mortgage is your local real estate market capitalization. Your local real estate market capitalization, also known as LTCi, is the total number of mortgage loans that have been issued in your local jurisdiction. Take note that this figure is considered to be a good indicator of where your local economy stands. Lower numbers in this category would mean that the demand for mortgages is low, which would naturally correspond with lower mortgage rates. On the flip side, high numbers in this category would indicate that the supply of mortgages is too high, which would naturally correspond with higher mortgage rates.
Another factor that goes into determining where you will get your td mortgage rates is the overall banking sector in your area. Some banks mortgage offerings are made to compete against each other, which can be a significant force on TD mortgage rates. Check with local banks and see if they have any fixed-rate mortgage offers that could work in your favor.