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If you plan to stay in your first home for fifteen years or more then you want to try to find a fixed rate mortgage. That means if you will live in the home for 15, 20 or 25 years that the rate and term you set at the start of a fix rate mortgage will not change no matter what happens in the mortgage market.
You may pay a little higher interest for a fixed rate but you can go to sleep each night knowing that if you can afford to make that mortgage payment chances are very good you can continue to make the payments over the term of the loan.
Typically your pay will go up and that mortgage payment will get a little easier to pay. If rates do go up your rate starts looking better and better each time this happens because nothing changes for you. If you are not sure if you are going to be in the home for 15 years or more, get a fixed rate anyway. I like to cover my risk and know what to expect down the road.
If you have a windfall break you can always pay a fixed rate off early. There are also some excellent mortgage term reduction programs available if you would like to get a fixed rate mortgage paid off in fewer years. As your situation changes talk to your broker about what he or she recommends.
You may contact me personally to learn how a money merge account can pay off a 30 year fixed mortgage in less than 15 years without costing you one more dime in monthly payments.
Kirt Eure
