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Old 12-28-19, 01:12 PM   #186
MN Renovator
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Thanks for the link. In the US, the mortgage companies are more competitive and prepayment penalties aren't that common here. Here 'term' means the duration of amortization. Most loans here are 30 year fixed rate loans, followed by 15 year fixed rate loans. Many still get 5/1 or 7/1 adjustable rate mortgages though which are 30 year loans based on a specific loan-based indicator where the first 5 or 7 years is a fixed rate and then every year after that period the rate adjusts with the indicator. They usually come at a slightly lower rate than a fixed rate loan. With rates at historic lows, it's difficult to consider one of these loans today unless someone plans to move out within 5-10 years of moving in.
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