Contact Team GEMINI for a professional introduction to Tracy Ansley, Mortgage Agent. She is one of our top Trusted Partners.
You might wonder what the experts predict and how to decide for your situation. You might spend too much time on social media, reading conflicting opinions and getting anxious. But you don’t have to let fear or confusion take over. You can find a solution that works for you.
In this article, I’ll share three common scenarios that homeowners face and what I recommend in each case.
Scenario #1: Your mortgage is up for renewal this year
You might think the best option is to lock into a 5-year fixed-rate mortgage because they have the lowest rates. But that’s not true. Rates are likely to drop in the next few years, and you don’t want to regret locking into a high rate. How would you feel if you saw rates go down by 2% in 2024, but you still paid 7% for three more years? You’d be unhappy.
Think about going with a 3-year fixed rate term. It’s the best of both worlds. You’ll get a reasonable rate, avoid another possible rate increase, and take advantage of lower rates when you renew. Your future self will appreciate it.
Scenario #2: You’re in a variable rate with 2-3 years left on your term
You have two choices. One is to think about the option above, lock into a 3-year fixed rate term. This is good if you prefer stability and certainty. You’ll know your mortgage payments every month, and you won’t worry about changes.
The other option is to stick with your variable rate and hope for the best. This is risky, but it could pay off. Rates have gone up a lot, but they’re likely to come down. If you can handle fluctuations and uncertainty, you might save more money than if you were locked in.
Scenario #3: I need to consolidate my debts and lower my payments
If you have non-mortgage debt, such as credit cards, car loans, or student loans, you’re paying a lot of interest and fees every month. This can make it hard to manage your cash flow and save for your goals. A smart way to deal with this problem is to refinance or consolidate your debts.
Some lenders will let you break or add to your mortgage, so you can use your home equity to pay off your other debts. This way, you’ll have one monthly payment at a lower interest rate. You can also extend your amortization period to lower your payments. Of course, this means more interest over time, but you can shorten your amortization later when rates go down or your income goes up.
Don’t let fear or confusion stop you from deciding on your mortgage. There are options for your needs and goals. All you need is guidance from an experienced mortgage broker. They have the knowledge, skills, and connections to help you find the best deal. I’m here to help you save money and sleep better:)
~Tracy Ansley, Mortgage Agent Level 2- Lic.M20002801
Questions on your mortgage, or want to compare your mortgage to what is currently available? Contact Team GEMINI for a professional introduction to Tracy Ansley, Mortgage Agent. She is one of our top Trusted Partners.
Team GEMINI is not a professional Mortgage Agent/Broker. Readers are encouraged to speak with a licenced Agent/Broker for financial advice before making any sale/purchase decisions. This article is for general information only.