Frequently Asked Questions
Will mortgage rates be lower in 4 years, when the mortgage matures?
There is a good possibility that rates will be lower in 4 years’ time if the economy slows given higher current rates. However, there are other National and Global forces at play that could surprise everyone and keep rates higher for longer.
Is the 4-year rate better than the 3 year rate?
The 4 year fixed rate is not necessarily better than the 3 year fixed rate. The question is, if it is a better fit mortgage rate for your unique situation and tolerance to risk.
Is the four year fixed rate riskier than a five year fixed rate?
That’s an interesting question because risk works in two ways. If the four-year fixed rate is currently lower than the five-year, then this lowers your risk because you are saving on mortgage interest costs over the 4 year term. However, if rates on the renewal date after 4 years are higher, then the 5 year term could be a better decision. The trick is finding a 4 year fixed rate that is the same as, or better than a 5 year rate. This is less common in 2023 however it can happen and Altrua can help.