It’s been 7 years since I signed my mortgage. Although I remember it like it was yesterday, it still seems like a lifetime ago. In some ways it is. My life now looks nothing like my life did at that point. One of the many things that has changed is the interest rate available for new mortgages.
When I signed back in 2003, I opted for a mortgage that included cashback. Meaning, in addition to the mortgage, they also provided us with “bonus” money that we used to buy appliances, or something else useful (I hope). That option was great, but it also meant having a slightly higher interest rate than had we not gone for the cashback. The final rate ended up being 7%.
Over the last few years the rates have tanked considerably. They can’t stay this low forever, and someday people are going to be in for a rude awakening, but in the meantime, we enjoy them while we can. I signed an early renewal at a rate of 2.3% this morning, opting for a short term mortgage because the house should be on the market before the year is out. Better to save a little money on the monthly payment now, than continue to overpay until the current mortgage came up for renewal.
One less thing to worry about.