Quote:
Originally Posted by Flabbibulin
I have my renewal coming up fairly soon (coming off a 5 year), but have the intention of buying a new home in a year or two- and hopefully selling current one; don't think I will want to rent it out. Does it make sense then for me to consider a short term? Not sure how penalties work, but I think we are penalized 3 months if we sell while on a closed, but not on an open?
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Penalty would be the greater of 3 months interest or interest rate differential on a fixed. Going with a 2/3 year term isn't a bad choice at all, but penalties are higher on the fixed side. Why not look at doing a 3 year variable? Penalties are much lower with VRM's.