Is lowering your monthly mortgage payment a priority for you? Believe us, we hear that all the time too. Increases in mortgage rates increase the cost of borrowing money. The cost of borrowing money seems to increase on a daily basis due to some new “hot” financial topic. However, this shouldn’t prevent you from applying for a loan. Instead, you should take advantage of these higher rates by looking for ways to save money. Below are some suggestions for obtaining the most competitive bmo variable rate. Saving money on your mortgage is possible by putting an interest rate cap in place. This means that the interest rate can be locked in at a lower rate if you refinance your loan before the end of your existing term. A borrower with a 30-year mortgage at 5% interest who had originally planned to refinance at 6% but now wants to wait until the end of their term would be able to do so at the lower rate. If you did this, your monthly payments would be only slightly higher than they would be if your interest rate wasn’t capped. Putting a limit on your mortgage’s interest rate is one way to save money during the life of the loan. This means that the interest rate can be locked in at a lower rate if you refinance your loan before the end of your existing term. You could lock in a lower interest rate if, for instance, you had a 30-year mortgage at 5% and were planned to refinance it at 6% but ultimately decided to wait until after the end of your term. If you did this, your monthly payments would be only slightly higher than they would be if your interest rate wasn’t capped. At the end of your mortgage’s term, if you want to refinance, you may have to pay a fee to get out of your current loan. Whether or not there was an early termination charge (ETF) associated with your previous loan will determine the size of this exit penalty.