THE DAVISVILLE & LEASIDE INSIDER

THE DAVISVILLE & LEASIDE INSIDER

Tuesday, July 6, 2010

Demystified: fixed rate mortgage and variable rate mortgage..

I often get questions about fixed rate mortgages versus variable rate mortgages and I found this interesting article...so I'm passing it on to you.

Fixed mortgage rates are determined by the price of Treasury bonds and performance. Investing in bonds are generally considered safer than stocks, and when the financial crisis, investors are generally in stocks, bonds discharged preferred government bonds in particular, and at the same time as the stock market booming , investors would have in all likelihood a better return on investment to stocks. In this way, there is a decline in demand for bonds, following their evaluation decreases to add to their return. On the other hand, if the economy turns out to be less stable and stocks are not so attractive, the demand for loans that their incomes reduced.

Click here to read more....

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