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Help required please, which is better?
edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
4 replies 609 views
Hi. We are due to come out of our mortgage deal in a couple of months. They have said that we can remortgage within three months of the end date with no penalties. My question is which is better a 10 year fixed rate or a 5 year fixed rate which would give us a lower interest rate. (this way we could afford to reduce the term bu a couple of years and keep the monthly payment about the same as it is now). The debate in our house is that according to my husband he says if we do a short term we will come out of the deal right when the interest rates are really high again. Whereas if we do a longer term at least we know how much we are paying each month and by the time 10 years have elapsed the interst rates should hopefully have come back down again (something to do with recessions happening every 7 years, with 7 years to recover or something?) If anyone can help and give me some advise it would be greatly appreciated.
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