OK, let’s talk about rates…
Let’s face it, when it comes to getting a mortgage, everyone wants the “lowest rate”. I mean, why not save a few pennies, right?
Sure, a low rate is important, but choosing your mortgage and lender based on rate alone can be a BIG mistake. With that in mind…
Here are 4 factors to look for beyond rate:
- This is the length of time it takes to pay off your mortgage.
- It's tempting to choose a longer amortization because that keeps your payments low.
- But lengthening your amortization means you're paying off your mortgage more slowly, so you end up paying much more in interest. Choosing the correct amortization for your needs can help you become mortgage-free much sooner!
- This is the length of time your rate is locked in.
- Short or variable terms generally have a lower interest rate than longer terms.
- But before you choose a term, consider where interest rates are going and how secure your financial situation is.
- Can you afford a sudden rise in payments, or do you need the security of payment stability over the long term?
- Give some thought to what your situation and needs will be in five or ten years.
- Is there the chance you'll get transferred? If so, maybe you should consider a portable mortgage.
- What if you get a raise and want to pay down your mortgage more quickly? In that case, you'll wish you'd chosen one with low or no prepayment penalties.
- It's essential to consider these possibilities before you lock yourself in!
- With some lenders, once you've closed the deal, you never hear from them again.
- But a reputable mortgage professional will stay on top of your mortgage on a regular basis, always looking for ways to help you pay less interest and become mortgage-free sooner.
Finding the lowest rate can be easy. But if you'd like some help adding these other vital factors into the equation, give us a call.
For Vancouver Mortgage Broker related inquiries ~ 604 628 5040.
For Vancouver Luxury Realtor related inquiries ~ 604 566 8968.
Jessi Johnson Vancouver Mortgage Broker Vancouver Luxury Realtor