34 - Friday, June 26, 1987 - North Shore News

NEW HOMES WY NEW HOMES YW NEW HOMES

Terms vs. rates

MORTGAGE INTEREST rates usually reccive
most attention from real estate players when they

are very high or very low.

Back in the early eighties,
rates were extremely high
and everyone was looking at
ways to reduce carrying
costs.

Today, rates are lower
than they have been for over
a decade. But the choices
facing homeowners are still
the same,

Usually, the longer the
term of the mortgage, the
higher the interest rate. By
term, we mean the time until
your mortgage comes due
for renewal, and with the
exception of variable rate
mortgages, that period over
which the interest rate is fix-
ed.

Because of these low rates,

+ By JAMIE JOHNSTON
Contributing Writer

many people are attracted to
six month and one year mor-
tgage terms. Whether they
realize it or not, they are
betting that rates will be
about the same when their
Mortgage matures and they
have to renew again.

If not, then they will have
lost the money they gained
from the lower rate in the
previous term.

At the other end of the
range, ten-year mortgages
have been very successful.
These mortgages are attrac-
tive because they allow
homeowners to lock in their

PAUL JENNINGS

mortgage payments for a
long time.

Paying a small interest
rate premium at the outset to
ensure that your current in-
come will always meet your
mortgage payments brings
security. And, if rates go up,
then you could also save on
interest costs.

These types of decisions
must be made on an indi-
vidual basis. Homeowners
must measure the interest
rate risk and also answer the
question of affordability.

Risk can be measured in
terms of estimates on up-
ward and downward move-
ments in rates over a period
of time. Affordability is
simply a question of how
much extra income you can
direct to mortgage payments
if rates suddenly rise.

whey Ses i delta a

RES: 922-2753
BUS: 925-2911

ALMOST FINISHED!
ALTAMONT - WEST VANCOUVER

Absolutely charming traditional home,
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Ye acre property beside a babbling
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Only weeks from completion, so call for

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#410-650 west 41st ave.

LUXURY, TOWNHOUSE
COMPARE

f THESE FEATURES

a .- 3 bedroom

i 3 baths

a ~ Near Seabus

s- lotal 1720 sa.ft. &

a - Quality construction

a ~~ Many more costly features

B- End unit — Windows everywhere

*119,500

INCREDIBLE PRICE!!
OWNER SAYS SELL!!

209 E. Keith
Open Sat/Sun. 2-4
RICHARD BEARE

an ‘appointment to view! $349,000. : : . ‘|

. B This last brand new townhouse comes with 6 deluxe appliances. |
la The price of a $119,500 is absolutely the best value you will finds
@ within a quick walk to Seabus —- come see for yourself.” a

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1221 LONSDALE
PHONE: 985-9544 (24 hrs.)

| Artfully conceived, thoughtfully designed, painstakingly]

constructed, Impeccably finished.
Only 4 exclusive residences of unsurpassed quality, size
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A BEST BUY THIS WEEKEND
IN CENTRAL
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These two lovely quality built homes await your offer. 3 bdrms, family room, large
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Graham Crockart
Architects

Low $200’s

GERRY MILLIGAN 985-9544, 987-6229
SANDY McNIELL 985-9544, 988-1842