Quote:
Originally Posted by geos
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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That's not bad at all. On a small $200k mortgage, that's still $20,000 you are able to prepay every year for five years. Plus, I'm sure you'll be able to increase your monthly mortgage payments