Headlines About Mortgages- Google Alerts

About a month ago, I learned about Google Alerts. It is a very handy tool to have.

Monitor the Web for interesting new content
Google Alerts are email updates of the latest relevant Google results (web, news, etc.) based on your queries.
When using google alerts you go to http://www.google.com/alerts

It can also be used as a security measure. Many Realtors listings' have been hijacked. These guys take the listings and advertise  the house is for rent for a great price. Almost too good to be true. Renters pay them rent and of course the house is not for rent and the renters have lost their money. T
For google alerts, you can put in as many alerts you like. So in the Realtors case, they would put the address of the house listings and their name. So if anyone on the web is advertising any of those items the Realtors would get an alert that the address is being used or their name is being used.

So for me of course, I have an alert for Mortgages In Canada. Comes to my email box once a week.
Mortgages are big news. The headlines sell papers. Articles get read especially the doom and gloom articles. Below are a few headlines I read this morning from just 1 google alert:

Mortgage market tiptoes toward subprime
Canada home prices fall in March, sales up-CREA
Be very afraid of the Canadian housing bubble
Vancouver weighs on market as average Canadian home sale price falls
Canada Home Resales Rise 2.5% M/M in March, Up 1.6% Yr/Yr

The great news is there is news. You can read several articles with a different opinions, helping you educate yourself in the subject of mortgages. Or you can be like some and be afraid of these headlines, and not think about going for a mortgage when the rates are at a all time low.

What a lot of these articles are trying to articulate is this :

Interest Rates are Low= Low Mortgage Payments
Interest Rates are Low=You can buy a more expensive house with the same earned dollars
Property values are high which means that property values may decline for a few years
Interest Rates can only go up or stay the same depending on the economy
Interest Rates will go up and you won't be able to requalify for a new mortgage at the end of your 5 year term

Now depending on your situation, it may have a good outcome or a bad outcome.

If you bought your house and rates are the same but property values drop, this would only affect you if you wish to sell short term. The housing market corrects itself. 

The big one that most are writing about is that Interest Rates will go up and when it is time to renew, the mortgage payments will not be affordable or you will not qualify. Plus if property values take a dive you will be in double jeopardy of losing your house. You will owe more than what your house is worth and you will not be able to afford the new higher interest rate payments. Yes, just like in the United States.

I have a solution for that. It is called a low interest rate term of 10 years. Most people take out terms of 5 years and in the next 5 years no one knows what will happen with rates, property values,job security, etc. The market may not have enough time to correct itself.

With a 10 year rate it is long term. You will have 10 years of equity in your home. If you have made the maximum prepayments each year you will be farther ahead. You will have 10 years of the same low payments. Right now under 4%.  After 10 years of payments- you will not owe more than what the house is worth, you will have equity in your home, you will qualify for another mortgage with higher interest rates.(assuming you earn the same or more). It is a good situation to be in. So if you are not a gambler, and want a more secure , stable long term payments, give me a call or email me and we can sit down and talk about the 10 year mortgage term. Also for those that have a home and want to refinance to a 10 year term, give me a call and lets work out the numbers.



Angela Kroemer, AMP
Mortgage Professional
TMG The Mortgage Group Canada Inc.
TMG Sharie Marie Mortgage Team
1.250.650.4182
akroemer@mortgagegroup.com
www.angelakroemer.blogspot.ca

www.KroemerMortgages.com
Your Mobile Mortgage Professional in The Comox Valley