When it comes to fixed rate mortgages, the 5 year term is the most common. While most people think that shopping around for the lowest interest rate is the most important aspect of choosing a mortgage, choosing an appropriate term is equally as important. Here is an example: If you were to have taken out a $300,000 mortgage in 2009 with a 5 year term at 4.5% and you were wanting to get out of that mortgage 2 years early, you would have to pay roughly $11,000 in discharge fees (depending on the lender). If you would have taken a 3 year term at the time of origination at 4%, your payments would have been just over $80 less a month . You would also have paid approximately $4400 less in interest over the 3 year term. The savings of the penalty in combination with the lower interest rate is over $15,000! If you intend to keep your mortgage for the full 5 years, there are clear benefits of locking into an ultra-low rate for a longer period of time. With rates as low as 3.89% for a 10 ye...