Easy Orange Mortgage – 2.750% Is Not Unheard Of
With ING’s Easy Orange Mortgage, 2.750% is not an impossible number to reach for an interest rate. While rates change daily, even hourly at times, this particular mortgage product regularly has a rate below 3 percent. This is good news for those who are looking to borrow in these difficult economic times. But before you jump into this mortgage, take the time to learn a little more about it and whether or not it is a good fit for you.
The Easy Orange Mortgage offers a unique mortgage solution. It offers a set rate for either 5 or 10 years, but calculates payments based on a 30-year repayment. When you sign the loan, you are locking yourself into the 5 or 10-year repayment period. During the repayment period, your rate does not change. Currently, the rate on a five year loan is 2.550% and the rate on the ten-year loan is 3.500 %
Sound too good to be true? The Easy Orange Mortgage 2.750% or lower mortgage has rates close to half of what other banks are charging. How can they get away with this?
When you reach the end of your 5 or 10-year term on this loan, you will have to pay all of the remaining amount in full. You have the option to refinance or “renew” your payment period for another 5 or 10 years, but if you do so, you will do so at the new current rate, which is likely going to be higher. Because the loan only “locks in” the rate for a short 5 to 10 years, they can offer these significantly low rates. However, you will have to determine what you are going to do when you reach the end of the 5 to 10 year period of time.
Considerations to Make When Choosing the Best Mortgage
ING attracts potential borrowers with the promise of record-breaking low rates, but that does not automatically mean it is the best mortgage for you. While it claims to be a “fixed rate” loan, it is not actually a true fixed rate. You will find that you function much more as an adjustable rate at the end of your 5 or 10-year period.
When you are looking for the best mortgage product for your needs, you must consider your future plans. Will you be staying in your home for the long term, or is this a starter home that you plan to use to launch you into the real estate market, getting bigger and better with each new purchase? For a short-term residential solution in a market where housing prices are not steadily falling, an arrangement like the ING mortgage could work well. In a market where housing prices are falling and interest rates are rising, you may be better off with a more conventional loan approach. So, always look at your long-term goals, read the fine print, and consider the costs of the mortgage, both now and in the future, before you make your decision.
