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Originally Posted by Table 5
Thanks for the help. All good things to consider when talking to the broker....he didnt mention whether this was open or closed. Definitely would prefer open, as at some point Id like to add in some lump sump payments if possible.
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I had a few more comments here.
1) If you're planning to buy a new personal residence and make this a rental in 3 years, you may be better off NOT paying down your mortgage. Mortgage interest on your rental property would be tax deductible, whereas mortgage interest on your new residence isn't. You may be better off saving the money you'd use to pay down your current mortgage towards a larger down payment on your next house.
2) You can sell/payoff your mortgage at the end of the term with no penalty. You can always pay off a variable with only a 3 month interest penalty. An open mortgage is always pre-payable, but very expensive. Rule of thumb: Selling in <6 months, get an open, selling in a few years, get a variable, not selling, consider fixed at current low rates.