With so much competition among financial institutions, consumers don't know whether to go for the cash-back offers, rate discounts or any of the other enticements laid out for them to choose from. Once the consumer settles on a financial institution, there are still a lot of decisions to be made, each of which can make or cost you money in the long run. Another mortgage decision which may be even more important than those noted above relates to the term of the mortgage.
Consumers pay for mortgage stability by incurring higher interest costs in the long run.
The message is quite simple. Long-term stability has its price. The reason for the lower numbers going forward are related to the current relatively flat yield curve environment. Basically, it comes down to the volatility and risk. Speakman suggests first-time buyers consult a mortgage specialist as soon as they decide they are serious about buying a home.