Episode 33 – Transfering from VRM to fixed

That’s good. I appreciate that very much. Maybe I’ll bring my little camera and get you in the next video blog. All right, take care Raj. Bye, bye. This is Jessi Johnson and I did that for a reason. I got a call from Raj, a realtor I work with. Great guy who just finished a very difficult deal. He just checked out one of my video blogs on the internet and found it very entertaining I hope, so he says! I had a message today that I was going to talk about. It is September 29th, 2008 and what I am talking about today is whether you should lock in or not. Right now fixed rates because of the American turmoil, all the issues they’re having. The variable rate, some lenders are lending at prime where as nine months ago, a year ago you could have got prime minus .9. Maybe about a year ago to be realistic. Now they are offering at prime. Prime has been the first to be affected by what is happening in the states. Now let’s look at the fixed rates. A couple days ago I could have got 5.14%, now it’s already up to 5.4% and because the bond yield which dictates your fixed rates has come up a fair amount, it is predicted to stay up a little bit for the next little while. My suggestion for you is those who are sitting at a variable rate, you might want to consider jumping into a fixed rate because inflations okay right now but it’s going to be coming up and what do the do to curb inflation? They increase prime and they increase your rate. Now I have a variable rate. I am going to keep my variable rate. I do not plan on switching over for a little while. If I think the fixed rate is going to skyrocket as well as prime, I will definitely switch from a variable to a fixed rate. It takes one simple phone call so I can help you with that. Anyways, don’t want to bore you too much. This is Jessi Johnson. You can contact me at www.firsthomeinfo.ca. If you have a question please ask the question on an email to jessi@jessijohnson.com and if you want your response on a video blog I have no problems doing that. Just ask, please respond on video blog and I will send you a direct link and we’ll go from there. Have a good day!