Ultimate Guide to the Best 3 Year Mortgage Rates

From different mortgage terms, mortgage rates always stand as one of the best option to manage your home buying process where the interest is charged on a mortgage. Today, mortgage rates are determined by the lender and can be either fixed, staying the same for the term of the mortgage, or variable, fluctuating with a benchmark interest rate. Not to deny that many of the mortgage option cones in options of 1-year, 3-years, 5-years, 10-years, 15-years, 20-years, and many others. Today, it has been often seen that people of Canada and America often look for the best 3-year mortgage rates. 

What are 3 Year Fixed Mortgage Rates? 

A 3-year fixed rate is one of the popular terms, offering both flexibility—for those who don’t want to be locked into their mortgage for four or five years—and extra rate security when compared to a shorter term. It is one of the most banks and lenders across Canada will offer a three year fixed mortgage rate. This is because it’s a great mix of security and length: 3 years is long enough to reap the benefits of a competitive rate but short enough to give you the flexibility to change loans if you find the mortgage rate is not for you. Once the 3 year period ends, two things can happen. Firstly, your mortgage loan could revert to the standard variable rate offered by your lender unless you choose otherwise, or secondly, your lender may approach you to fix an interest rate for another mortgage term. In most cases, your mortgage lender will notify you when your fixed period is close to ending so you can make the good decision. If they don’t, ensure you set a calendar reminder well before the fixed-rate ends so you can decide on what you’re going to do. 

Which are the top reasons that people look for 3 Year Fixed Mortgage Rates?

The primary reason includes: 

• When their mortgage rates are significantly lower than other mortgage rates, especially the 5-year mortgage.
• Because they’re a compromise between the rate protection of a long-term mortgage to see the difference between the short term and long term mortgage.
• Because they don’t expect that mortgage can last for over 3 years.
• For more information on a mortgage refinance stability.

 How to compare 3 Year Fixed Mortgage Rates? 

A 3 Year Fixed Mortgage Rates is the one that can be compared using the same factors as a normal mortgage loan, but there are a few additional things to consider. 

• Rate - The interest rate isn’t always the most crucial indication of whether personal or home loan is the right choice for you, but it will have a large bearing on the crucial measure like repayments. Also, keep in mind that the advertised interest rate will not take fees into account, so it's always best to compare them.
• Ability to make additional repayments - This won’t be crucial for all property buyers, but keep in mind that not all fixed-rate home loans will allow you to make extra repayments. The ones that do may come with an annual limit, so if you think you’ll be making additional repayments-ensure, you have the best of information on same.
• Fees - Compare the process and lead of establishment, valuation, legal and other upfront costs when comparing 3 Year Fixed Mortgage Rates. If the mortgage rate loan you’re interested in applying for is a package home loan, these are generally amplified with extra mortgage payments including in it.

 Final Thoughts 

Hence, 3-year fixed mortgage rates are always the best option to roll out your chance of seeking home under best of mortgage interest rates. If you as a user are looking for more information on the 3-year fixed mortgage rates online, never hesitate to connect with RateShop.ca! They are one of the top independent brokerages in 2020 as recognized by Canadian Mortgage Professional to seek information on trending mortgage rates!