Rising fixed rates great to reduce mortgage costs!

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Increase of fixed rate with new mortgage rate hold- saves money!

March 29, several lenders announce their fixed rate 3,4, and 5 year term interest rates are going up from .40 to .60 percent.

We have one situation where a customer owing $171,586 for another 37 months was quoted a payout penalty of $8,232.45.  Rates are scheduled to increase tomorrow.  As of tomorrow, based on tomorrows higher rates, his penalty went down to $6,554.37.    That's a savings of $1,678.08!

And, by providing a guaranteed rate hold of 120 days on a five year fixed rate at 3.69% today, there is still more time for rates to go up higher and reduce the penalty even more.

IF the rates appear to be declining before that happens, we can always reassess the numbers to see if it makes sense to change the mortgage.

How's that for a short and sweet strategy!