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Old 01-14-2012, 10:56 AM   #20
geos
Backup Goalie
 
Join Date: Jun 2011
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Restrictions are a 25 year term only and only 10% prepayment ability.

Not too bad unless you need the 30 year... which means you probably are stretching beyond means. The difference between 30 year and 25 year on a $200k mortgage is $100/mn. No biggy. Not for a 0.50% break on the rate.

The scary thing is when inflation exceeds the 5 year fixed mortgage rate... well... it's generally a sign you're deep in some stagflation depression. Japan's lost decade style.
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