Right now rates are at an all time low, but as sure as the sun will rise, eventually so will interest rates. You need to know what kind of mortgage is right for you.
The advantage of a fixed rate mortgage is that the interest rate is set for the entire term of the mortgage. A fixed rate mortgage offers you the security of knowing exactly how much principle and interest you will be paying on your mortgage during the term selected. If you think that interest rates will rise in the near future, you may want to lock into a longer term fixed rate mortgage but if you think that the rates may fall, a shorter term may be the best choice for you.
With a fixed rate mortgage, you are locked in for the term, so choosing the correct term is very important as you will incur a penalty to break your mortgage early. The fixed mortgage term can be anywhere from 6 months to 10 years.
If you are considering a fixed rate mortgage keep the following options in mind to help to reduce your mortgage faster.
Choose a lender who offers you the flexibility to:
- Change your payment schedule
- Increase your monthly payments
- Make lump sum payments at no additional charge
- Make bi-weekly payments
Most of the lenders we deal with, offer the above options. Let us help you choose the best package for your needs.