Quote:
Originally Posted by Table 5
I know it's a crystal ball situation, but for those who are in the know (and I'm clearly not one of them) would you advise going into a 5 or 10 year mortgage at the moment? I was offered 5 at 3.09% and 10 at 3.99%, 25 year amortization period.
Everyone keeps talking of rates going up eventually, but how far do you think they will go? and how long will it take?
Also, are those fairly decent rates at the moment?
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Depending on other factors like prepayment options I'd say those are good rates.
Thing about the 10 year is how many people stay for 10 years? I've heard numerous times that the average length of a term is something like 36 months. Meaming most people end up paying the penalty.
Personally I'd go with the 10 year because it provides a lot of stability, that's a personal preference based on my own situation though. Based on what I know about you (you are likely more financially stable than me) I might look at a variable rate mortgage.
If you're reasonably sure this is your last house ever, again I'd take the 10 year. If there's any chance you'll move 5 year is probably better.
Just my 2 cents.