Friday, 5 June 2015

What Is The Right Mortgage Term For Me?

I'm often asked what mortgage term is best for my clients, and it is tough to give a one-size-fits-all answer. The right term for your mortgage should be a balance of best rate and least risk, all while keeping you sleeping soundly at night. 

The shorter the term, the more you may have to worry about rates rising at the time of your renewal. 

Lenders know that most people are wary of interest rate fluctuations and therefore will generally charge a higher rate for the security of a longer, fixed interest rate term. Longer terms give you the benefit of knowing your payment/rate stays the same during your term, but at the expense of a higher rate overall. This is why it is important to get advice from a mortgage advisor who understands your unique situation and the variables that affect you. Terms can vary from as short as 6 months all the way up to 10 years, with 5 being smack in the middle and the most common choice in our area at this time. 

Looking at the rate sheets it is tempting to think that the lowest rate is the best decision, however as with any mortgage choice, rate is not always the most important factor!

Ask yourself, “How does this fit into my life? How does it fit into my long-term goals and short-term plans? Am I comfortable with my choice?” The most important thing is to be comfortable and fully informed in making your decision, that’s why I suggest seeking the specialized help of a qualified Mortgage Broker to ensure that you make the right decision for you.
For the most up-to-date information on rates, mortgage terms, and real estate in Kamloops, BC please visit us at www.ryanwsmith.ca or

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