MCS 2100 Lecture 4: casestudy
19 Nov 2015
School
Department
Course
Professor
Document Summary
3. 29 % 3. 09% 3. 39% 3. 89% 4. 49% 5. 29% 5. 79% Broker: home capital solutions mortgage date: july 07, 2015. 6 mos 1 yr 2 yr 3 yr 4 yr 5 yr. I believe the 5 years variable-open term is perfect for megan and sean. The interest rate for this term is 3. 65%, which in comparison to fixed-close term is at 4. 49%. Variable closed has a lower interest rate (at 2. 85%), the open term allows them the option to pay off mortgage earlier than their amortization period. The closed term makes them bound to paying the mortgage for the full amortization period and if in future the couple decides to sell their home or pay off earlier this option won"t be available to them. Also, because of the increasing inflation in today"s economy, interest rates are going down. Thus, because of the changing interest rates, the variable rate will only be beneficial to.
