Mortgage Types - Short versus Long Term Kelleway Mortgage Architects In deciding between a long or short term mortgage, the benefits of either depend on the direction interest rates are going. If you expect rates to fall... If you think interest rates are going to fall, a shorter term mortgage would make more sense. Firstly, interest rates on short term mortgages are generally lower than rates on longer terms. Secondly, getting a shorter term mortgage allows you to quickly renew at lower rates once your existing term runs out. If you expect rates to rise... Locking into a long term rate is beneficial if you think that interest rates are going to rise over a number of years. The question of course, is to determine how long you should set the term. |
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