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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