How Do I Choose Between a Short Term & a Long Term Mortgage?
At One Stop, our mission is simple: to get our clients into the best possible financial situation under their current circumstances.
So, what works for one person may not work as well for another.
And that’s ok. It’s all about the future, right?
With that in mind, it’s important to put yourself in a position to enjoy your future.
Long Term Mortgage
A mortgage term is the length of time before the conditions of the deal can be renegotiated. A long term mortgage is generally any deal over three years in length. Long term mortgages offer stability in payments, but the interest rate will be higher. 5 years, 6 years, 25 years – the mortgage rate rises with the length of the mortgage.
Short Term Mortgage
A shorter mortgage lets you take advantage of lower interest rates so you can pay off the principal quicker, but the payments will be higher in order to get the entirety of the mortgage paid quicker. Choosing this option also means you run the risk of rates going up when it comes time to renew.
Again, it all comes back to personal circumstance. This is what mortgage brokers are for, to help you best set yourself for future stability and prosperity.
Looking for more answers on mortgage terms? Call us today, we love talking shop.