When Chris and I first bought our house in 2001 we decided to take out a variable interest rate mortgage. I have to say that it’s worked out well for us!
When we first got our house interest rates were at the lowest that they’d been in years, perhaps decades and we locked in for 6 months at something like 2% below prime and then after that it was guaranteed to be half a percent below prime.
Our luck held, probably due to poor economic times throughout this decade and the prime interest rate has stayed relatively low.
Now with the possible economic recession in the US and our own Canadian economy starting to go down the Bank of Canada has lowered the prime interest rate at least three times in the last few weeks. That of course has resulted in our mortgage company lowering our interest rate as well. We’ve received three letters from our Mortgage company in the last two weeks and with each letter our bi-weekly mortgage payments have dropped.
In all our mortgage payments have dropped about $50 a month. That’s not a huge decrease, but it will help.
Have you been experiencing the same thing? Has your mortgage company notified you that your mortgage payments will decrease slightly in the near future? Our rate drop doesn’t take effect until December and unless I’m way off I think the prime rate might drop again!
That is really good news. Our Mortgage is up next week and I am seriously looking at the variable rates right now. I’m hoping to save at least $100 a month.