Introducing… The 4-Year Term

March 25, 2011 § Leave a comment

One of the major lenders we deal with at The Mortgage Centre has recently offered an exclusive 4-year term product.

A lot of clients have a knee-jerk reaction to the 4-year term and insist on a 5-year mortgage. But when the rate is at 3.64% versus the going rate of 3.89% of the 5-year, a borrower stands to save a considerable amount of money!

Well, we’re here to tell you that traditional isn’t always better!

Here’s 3 Reasons why your next mortgage should be a 4-year fixed!

Reason # 1

You get a lower interest rate! This means lower payments, and more of them going towards the principal of your mortgage.

Reason # 2

By the end of the 4th year, you will have paid off more principal and you will have paid less interest. (See the chart below)

– Pay $750.00 more towards your mortgage principal
– Save $2425.00 in interest payments
– Total payments will be $1675.00 lower

Reason # 3

If there’s a chance you’ll break your mortgage in four years (people refinance every 3.5 years on average), a 4-year fixed might lessen or eliminate your mortgage penalty.

Given the above reasons, this 4-year rate special is a great boutique lender product. It likely won’t last long, so if a low fixed-rate mortgage is what you seek, get in touch.

Below is the figures mentioned above.

Please note that rates may change without notice and are subject to certain conditions. OAC, E&O.


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