My Below Prime rate mortgage

Hendog · Hendog's Garage

Five years ago we signed up for the Bank of Montreal's 6 year "variable, below prime" rate offer. The first three years are locked in, the last three are open. We've stayed with it since rates have only dropped. We got 0.85 below prime. The banks' prime, not the Feds'. They don't offer this product anymore

Today, the Bof M prime is 2.5%, so we're at 1.65%. We have another year on this mortgage. I don't think I'll ever see this kind of rate again, but I'm enjoying it while it lasts

Rick Lee · Rick Lee's Garage

I have a LIBOR ARM at 4.625%, which I expect will adjust down when it comes time.

Christien · Christien's Garage

Your last name is Champagne. I can't begin to tell you how cool I think that is! (I'm not being sarcastic!)

And that's what you should be toasting with, looking at that rate!

911Rob · 911Rob's Garage

Awesome!

red-beard · red-beard's Garage

We're refinancing right now. The rate is 4.375 but with points. I'm working with them to kill the points and adjust the rate back up. I expect we will end up with a 4.75-4.875 rate

Dave L · 03-20-2009, 03:24 PM

Nice! I have been happy to never pay more than 5% on Fixed rate mortgages but 1.66% on variable is fantastic. 5 more years and Im done, although my wife going back to school might put that in jeopardy.

mikester · 03-20-2009, 03:56 PM

We sign the papers on 5.25 next week. I was hoping for 4.875 but that would have been with a point. at 5.25 I pay almost nothing in fees.

It's a minor rate change since we are at 5.875 now but still, it eliminates our 2nd and saves us $300 a month.

fastfredracing · 03-20-2009, 04:30 PM

Are any of you guys self employed, did you have a hard time qualifiying??. I am locked low for the next 5 years, but I would love to get a nice fixed safe 30 year while the rates are low. My credit is good, but self employment almost guranateed no re -fi for me last time I checked.

red-beard · red-beard's Garage

We will see!

mikester · 03-20-2009, 05:41 PM

My wife is self employed and was unemployed for most of last year (had a baby). The bank was reasonable about it, we almost qualified with my income alone but not quite. Her's put us over the top but they didn't require a great deal of documentation to prove it.

Since yours is solely self employed, I would say be prepared with lots of documentation. You'll need a loan to value ratio of 70% or less, and a debt to income ratio less than 45%.

Craig 930 RS · 05-07-2009, 08:36 AM

Just locked at 4.25%, 1 point, minimal fees at a credit union.