Yes, that’s correct. A 3-year fixed rate mortgage is a good option for younger home buyers who want to lock in their mortgage rate for a shorter period while they improve their credit score. It is also a good choice for those who don’t plan to stay in their home for five or more years. Jodi Smith with Whalen Mortgages Kamloops can help you determine which mortgage product is best suited for your individual needs and circumstances.Kamloops Three Year Fixed Mortgage

The five year fixed rate mortgage is the most popular mortgage product for Kamloops owners, but it isn’t the only one. You have the option to choose between a one year or five year variable rate mortgage. A compromise between a variable rate mortgage and being locked into a given mortgage rate for five years is a shorter loan term. This is one of the reasons that around twenty percent of mortgage holders have a mortgage loan that locks in their interest rate for two to four years. A good choice for these Kamloops mortgage holders would be a three year fixed rate mortgage.

What is a 3-year fixed rate mortgage?

A three year fixed rate mortgage is a type of mortgage loan that locks in the interest rate for three years. The loan renews in three years and the interest rate remains fixed for the duration of the loan. This type of mortgage loan is a compromise between a variable rate mortgage and a five year fixed rate mortgage, and is a good choice for those who are committed to living in Kamloops for three years but may not be certain they’ll stay for a longer period. It offers more stability than a one year mortgage and may have lower premiums if breaking or refinancing the mortgage. It is ideal for those who think their credit will improve over the next three years or expect interest rates to fall.

When should you consider a three year mortgage?

A three year fixed rate mortgage can be a good option for people who are unsure about committing to a single mortgage lender for five years and who think that their credit score may improve over the next three years, or who believe that interest rates will decrease over the same period. This mortgage is ideal for those who are committed to living in Kamloops for three years but are unsure about their plans for the next five or more years. By choosing a three year mortgage, they can still build equity in their property while having the option to renegotiate or shop around for a better home loan in the future.

Who chooses the 3-year mortgage?

A 3-year fixed rate mortgage is a good option for younger home buyers who want to lock in their mortgage rate for a shorter period while they improve their credit score. It is also a good choice for those who don’t plan to stay in their home for five or more years. Jodi Smith with Whalen Mortgages Kamloops can help you determine which mortgage product is best suited for your individual needs and circumstances.

Who should take out a 3 year fixed rate mortgage?

Three year mortgages are a good choice if you think you’ll move or upgrade homes in the next two to four years. They are a viable option if you think interest rates will decline over time, but you have more stability than a one year mortgage. If you’re breaking or refinancing your mortgage, one point in favor of a three year mortgage is that it may have lower premiums. Call Your Trusted Kamloops Mortgage Brokers at Whalen Mortgages Kamloops to lock in your mortgage rate.