Mortgage Term in 2024: Three, Five-Year Fixed, or Variable?

african american homeowner reviewing mortgage documents

As we step into 2024, whether you are gearing up for a new home purchase or renewing your mortgage, the question of interest rates is likely top of mind. To help you make an informed decision, let’s explore three popular options currently in the market:

  1. Three-Year Fixed Rate: 

The three-year fixed rate has gained popularity in the last 18 months amid market volatility. Opting for a three-year term provides short-term security while allowing the flexibility to potentially renew at a lower interest rate in the near future.

  1. Five-Year Fixed Rate: 

Many of my clients prefer the five-year fixed rate for its “set and forget” nature. Choosing this option ensures payment stability over the long term, offering peace of mind and avoiding the uncertainty associated with short-term rate fluctuations.

  1. Variable Rate

Despite recent increases in interest rates over the past few months, the variable rate has garnered attention. While not for the faint of heart, those who believe we are at the peak of the interest rate cycle may find this option attractive. Historically, seizing this opportunity during rate peaks has proven beneficial for mortgage holders over the long term.

For more personalized advice on the best mortgage term for your specific circumstances in 2024 and beyond, please don’t hesitate to contact me. I am here to guide you through the intricacies of the current market and help you make a decision that aligns with your financial goals.

For more details, please book an appointment with Paul by clicking here.


More posts

Enjoy lifestyle and financial updates