There are several variables to consider when looking for a mortgage. One of them is selecting a mortgage term that’s right for you. The mortgage term is the length of time that the mortgage interest rate is fixed. Standard mortgage terms range from 1 -10 years. The choice is yours and depends on your particular financial situation, and whether you’re willing to take a bit of a risk, or you prefer security over potential savings.
In general the longer the term, the higher the rate.
Is a shorter mortgage term right for you?
- Do you plan to move in the next year or two?
- Do you estimate that rates will go up and want to protect yourself against a larger rate increase while taking advantage of the much lower interest rates on 1-3 year terms?
Is a longer mortgage term right for you?
- Do you feel that rates are pretty good now and want to hold on to them as long as possible?
- Do you prefer the security of knowing your payments and interest rate will be the same for a longer period of time?
SMP’s mortgage coordinators can provide you with the details you need to make a choice that works for you. Apply online at www.smpapplication.com.