by First Option Mortgage
22. September 2010 09:57
Finding the Right Terms for Your Needs
When comparing fixed versus variable interest rates, an important question to ask yourself when selecting repayment terms is, "How long do you plan to live in your house?"
Are you planning to stay?
If you plan to live in your house for the full term of your mortgage, you'll probably want to look for ways to reduce your interest rate and reduce the total amount of interest that you'll pay over time. Choosing a repayment schedule with a shorter term (and higher payment) can be a smart way to accomplish this.
Are you planning to sell in 5 years?
If you plan to sell a house within five to seven years, reducing your interest rate may be less important than finding a monthly payment that suits your budget. Because of the many different variables involved, it is best to contact a licensed mortgage professional to help you through some options that will help you achieve what you’re looking for.