- Four-Year Fixed Term
The difference between the rate of a five-year fixed term and a four-year fixed term will save you one-third of a percent. This may not seem like a significant amount, but when multiplied over a four-year period, you could potentially save a few hundred thousand dollars in interest – not a small amount of cash.
- One-Year Fixed Term
This term results in very little financial incentive for a lender, so it’s not pushed as much as over terms. However, it can be the right term for a well-qualified borrower. With rates as low as 2.39 percent, it’s ideal for a homeowner with less than 15 years left on their mortgage.
- Terms to Avoid
A three-year fixed term versus a four-year term save you 0.10 percent, but when you renew, the savings could be decreased by higher rates. Avoid a seven-year fixed term as well. Although it offers a few extra years of security, the higher rates don’t justify it. Another term to avoid is the five-year variable term. Although there is a savings of 0.40 percent, but with no rate protection, these savings can be offset by rising rates.
- Pick the Ideal Mortgage for Your Situation
The ideal mortgage for one person may not be so perfect for another home buyer. That’s why there are many options available to you. Safebridge Financial Group offers a variety of mortgage options to help virtually any home buyer – even first-time buyers – purchase their dream home. Learn more about what options we offer.