Posted on: 18th Sep, 2012 02:42 am
I am planning to buy my first house. The offer that I had made was accepted. I'm currently looking at mortgage options and was going to accept an offer but an advisor working for the estate agents handling the sale says he can get me a better deal with an initial lower rate and changing it once the fixed period ends. If I took his advice I would save around $2,000 over 2 years of this fixed term but the overall term (25 years) is a lot more expensive than the bank offer. The initial rate is 2% lower than the offer given to me by my bank going on his advice, he says it is commonplace to take out a fixed term, then change after that term and find a better deal elsewhere. I am skeptical, mainly as it seems too good to be true but can anyone shed any light or offer advice?
HI nlsn,
I personally prefer fixed rate than adjustable rate mortgage. In fixed rate mortgages though the initial rates are higher than compared to that of adjustable rate mortgages, but the rates will remain the same throughout the loan term. In adjustable rate mortgage, there is always a chance of rates getting higher with time.
Thanks,
Jerry
I personally prefer fixed rate than adjustable rate mortgage. In fixed rate mortgages though the initial rates are higher than compared to that of adjustable rate mortgages, but the rates will remain the same throughout the loan term. In adjustable rate mortgage, there is always a chance of rates getting higher with time.
Thanks,
Jerry
Whatever be the type of mortgage loan, first make sure it is within your affordable limits. Also you need to ensure that the lender from whom you are taking out the loan is a genuine one.
The best thing that you should do is to look for a mortgage option that only offer low interest rate and with long term although there's no other advisable option to finance a home but only mortgage.