Is the Lowest Mortgage Rate the Best Way to Go?
When you are shopping for a mortgage, one of the things you want is to look for is a low interest rate. A lower interest rate lowers means that your total cost of borrowing will lower than it could be with a higher interest rate. However, there are some people who ask if getting the lowest possible mortgage rate is the best way to go.
The answer is not always. There are so many conditions that you’ll want to be aware of with your mortgage. Lower interest rates keep your monthly payment low, but what about the ability to make pre-payments, additional principal payments or the flexibility to re-finance your mortgage if needed. You must also consider the payout penalties, the amortization period and if you decide to go with a variable rate, consider future possible prime rates – all of which will impact your financial situation.
If you have additional questions about this topic or others, please contact us at Higgelke Mortgage Group.