Finance, Forex and Investments

interest rates?

I'm getting a mortgage, and want fixed interest rate, but im not sure what term to go for. We originally said 3 years, but what are the chances of interest rates being lower than what they are now in three years time? Would we be better with a longer term?

Public Comments

Historically the rates have been going up, but this is real Crystal ball stuff, personally I would fix my mortage for as long as I could, whilst rates are still reasonable - if for no other reason that you can budget X amount of years ahead. Yes, rates may go lower in the future but not by a massive amount, its all swings and roundabouts really.
if u wnt a safe interest u can deposit in a bank which will give u good 8% interest
15, 20, or 30 years
No one can predict what the interest rates will be three years from now. They were in double-digts during the 80's and rock bottom after September 11th....any factor in the economic world can change these figures overnight. It's a gamble, and that is why the interest rate is lower for these higher risk programs. How long you are going to be in the house is usually the best determiner...if you are going to be in the house forever, then a fixed-rate loan is what you want. If you are only going to be in the house for 3 or 5 years, then get a 3/1 or 5/1 ARM. You'll be selling the home before the variable interest rate changes your payment.
It depends on your situation. If your credit score is not that high right now then your best bet is a 2/28 or a 3/27. Then after the 2 years you can refinance your loan. If your score is really high right now and you're planning to live in the home for a long time then you can also get a 30 yr fixed loan. Just remember that the longer you have the fixed rate then the higher your rate is going to be. For example: Your broker might offer you these options.... 7% - 2/28 (2 yrs fixed & 28 adjustable) 7.25% - 3/27 7.50% - 5/25 8.25% - 30 yrs fixed You'll be paying less right now if you go for the 2/28 or 3/27. You have to ask yourself several questions to come up with the right answer. 1. What can I afford to pay right now? 2. How long am I going to live here? 3. Am I okay with refinancing in 2 or 3 years If you're not planning to stay in the home very long you can try an Interst only loan. I have a 5/25 IO on my home right now because I knew I wasn't going to live here very long. Talk to your broker and ask him/her what he suggests. Their job is to get you the best loan possible that suits your needs. Good Luck!
Having got a mortgage recently, I have an interesting point regarding the fixed rates with the company I went with. 2 year fixed rate: 5.34% 3 year fixed rate: 5.42% 5 year fixed rate: 5.34% 10 year fixed rate: 5.34% So the 3 year rate was higher than the others, suggesting that the company is expecting some sort of blip in 3 years time (how the hell they can tell that I don't know). Personally I reckon that other the next few years there's a good chance rates will rise to about 8%. In 10 years time I have no idea what they'll be. I'd definitely recommend3 years rather than 2, and I reckon 5 years is better than 3. 10 years may be a bit of a risk, but it'll help you to budget well. As to moving house: most mortgages these days are transferable. Don't be put off getting a 5 year rate because you'll probably be moving in 3 years, you should be able to take your mortgage with you.
hi if you need mortgage advice or a qoute email me on quotes@mukconnections.co.uk (mortgage broker)
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Need to look long term on this. Rates are going up in the foreseable future, but 3 years is a crystal ball. If it were me lowest rate for longest term at moment.
I suggest that you go with a fixed thirty year mortgage. If the interest rates drop and go lower than what you are paying then you can refinance for a better payment and interest rate. There is another suggestion, you could do 5 year term, which means that you would have to shop around every 5th year for a new loan or choose to renew the original note. This is risky if you should fall into credit problems, or loss your job because you have to go through the whole approval process over again.
Take the fixed rate for the entire term of the loan just to be certain. Adjustable rate mortgages NEVER go down. Unless you are planning to get rid of the house in two or three years, pay the couple extra dollars a month now so that you will not get slammed when the rate adjusts and find yourself trying to refinance. Dont let that extra 1% lower rate tease you. Ask the bank how much can the rate adjust after 3 years if you go with that type of loan.. There is a cap on it and it is usually 3%. Trust me, it probably will go up the entire 3% and you will be sorry when you see your new payment. I always believe to play it safe when talking about your home. Go 30 yr fixed.
Relative to the past 25 years or so, rates are still pretty low. I would not take a short-term mortgage on the "gamble" that rares will be lower in 3 years. I would not take a mortgage with a shorter fixed rate than the amount of time you plan to be in the house.
I would consider a 5 year fixed rate or a 30 year fixed rate for your loan. Currently rates on a 3 year fixed rate are not any better than a 5 year fixed rate, and right now a 30 year fixed rate mortgage is just slightly higher than a 5 year fixed rate. If you know you will be only keeping this loan or home for 5 years than a 5 year fixed rate would be a good option. If it is still up in the air on the long term plans for the home go with a 30 year fixed rate even though the rate may be slightly higher on .125 or .25% higher in rate. The current trend is rates are going higher.
interest rates are liken to shooting craps -- the best bet is determine how long you are going to live there. if in you mind forever than go for a long term -- but if this is a place where you will be moving 3-5 years from now set up your loan short term -- hope this helps
How long do you intend to hold the property? If you plan to keep the property for 5 years, then get a fixed rate for 7 just to cover yourself. Get a fixed term longer than you intend to own the property. You will pay a bit more each month for a longer fixed term loan, but you will have more security and be better able to plan financially. My standard recommendation, without knowing any details, is still the good old 30 year fixed rate fully amortized mortgage based on seeing so many unforeseen circumstances arise in my life and the lives of my clients
Just make sure you get a fixed rate like you want, and if interest rates go down, you can re-fiinance, that's what we did when our interest rate was at almost 6%, we re-financed and got it down to 5%, and have a lot of equity on top of it. Don't ever go with an adjustable rate, they screw you every time, they always have hidden stuff, like baloon payments in the fine print, and the chances of the interest rate don't look to likely now, and they won't lower your interest unless you have good credit.