Mortgages

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reeb's picture
reeb
Status: Member (Offline)
Joined: Jun 19 2012
Posts: 1
Mortgages

Hi all, new to the site.   I am wondering what the prevailing wisdom is to mortgage terms?  Long or short?  Locking in a long term (10 year) rate seems to make sense to me.  Can't wrap my mind around how the whole money printing, deflationary credit and basic necessity inflation will mix in.  I am working on the other things and it makes sense to lock down that future cost.

I live in an area (Alberta) that hasn't been as subject to the volatility that many other areas have seen and with a petro dollar economy booming here (can anybody say Tar sands) foresee home prices being more or less stable.

Thoughts?

 

 

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
Go long

Welcome Reeb

I suggest locking in the longest term fixed rate mortgage available to you.  In the US that is 30 years.  In Canada I understand the limit is shorter.  Money will assuredly continue to be devalued, and this process will accelerate.  This works to the advantage of the one who pays the loan.

Travlin 

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