Quote:
Originally Posted by Draug
I had the same decision to make last summer. Then, it was between a 5yr @ 3.09% and a 10yr @ 3.99%.
In the end, I opted for the 10yr @ 3.99%. My mortgage is at the very upper end of what I can afford. I probably couldnt absorb an interest spike over 6.5%, and if that happened at the time of a 5 yr renewal, I'd be in a world of trouble. So, even though the 10 year will cost me a bit more longterm, it mitigated enough risk to make it worth it for me.
Btw, Mike Oxlong found my original mortgage, and helped me with the refinancing. From experience, I highly recommend Mike for any of your mortgage needs.
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My prediction is that the end of 5 years, lots of people will be refinancing to stretch out the amortization again if there is a spike in rates to lower payments. If people made increased payments it would certainly help at renewal when rates are theoretically higher then now.