Not all mortgages are created equal, and the best option for you depends on a variety of factors. For instance, should you choose a short-term mortgage or a long-term loan?
A mortgage with a term of less than three years is a smart choice if you anticipate needing a new loan sooner rather than later (if you’re going to move again in the near future, for instance), or if you think that interest rates might drop. Choosing a shorter term for a closed mortgage could help you avoid a hefty prepayment charge if ever you decide to pay your mortgage off early or cancel your loan.
If you don’t plan on changing your mortgage for several years, you could opt for a long-term loan. This option makes budgeting easier because you’ll always know how much each payment will cost you. If you get a great deal on a fixed-rate mortgage, a longer term means you’ll be enjoying that low interest rate for quite some time. To make an informed decision, seek advice from a mortgage broker or lending institution.