Know About Mortgage Terms
Many people, particularly, first-home buyers, tend to shop around for the cheapest mortgage rate that they see not knowing, or understanding, that these rates dip and fall.
If you get an understanding of how mortgage rates work, you will be in a far better position to land one that really works for you and may even be cheaper than the one you're ready to commit to, say, today. To know more about Mortgage Terms you can visit https://pekoe.ca/.
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Here's how mortgage rates work.
The first thing you should know about these rates is that they are unpredictable. They change. A high rate today may be low tomorrow. At one time, these rates were more stable.
They were set by the bank. But since the 1950s, Wall Street took over and adjusted them according to supply and demand. Or more accurately,
Wall Street linked them to bonds. So that when bonds – that are bought and sold on Wall Street – drop, mortgage rates do, too.
How can I know today's bonds rates?
It sounds simple: let's keep up with the prices of bonds and we'll know when to shop for our mortgage. Unfortunately, only Wall Street has access to this knowledge (called "mortgage-backed securities" (MBS) data). And they pay tens of thousands of dollars for access to it in real-time.