When you decide on a mortgage rate, try not to over think the rate and always aware of the bigger picture. Try looking at it this way, for example, you want to purchase an investment stock. This stock is over all good value and has a lot of potential for even further growth. It is currently trading at $10.00. Potentially, it could go as high as $18.00 over the next 12 months. If you planned on purchasing this stock, you would first do your due diligence on the company you are investing in. This would entail looking at the company financial statements, looking at dividends if there are any, the management, and overall potential growth. Once you were ready, you would purchase the stock even at $10.50 or $11.50 because based on your research, you know this particular stock has potential. At the end of the day you are still obtaining a profit.
Now let us look at a mortgage in this light. Mortgage rates overall are still very low, so regardless, the rate you get (once in the ball park) is very decent because you are buying into the mortgage market at a very good time. First of all, you should want to know that the company and mortgage broker you are working with have your best interest in mind. He or she will keep you updated on what is happening in the markets, will notify you of opportunities throughout your mortgage term if a better deal exists, help you plan for the future with strategies to pay down your mortgage sooner and buy other properties, and even help to build you net worth.
With the product you choose, you want to make sure you are getting the pre-payment privileges that will work for you. After all, you have the flexibility to break the mortgage at the cheapest penalty cost if it had to come to that. The term has to make sense and that the amortization matches up with your current cash flow.
Taking into account the above, does a rate of 3.49%, 3.55%, and 3.59% really make a difference when compared to the big picture? Would you give up .5bps for the sake of a good management team? Would you give up all your pre-payment privileges (possibly 20%), just so you could save .4bps or possible pay three times the amount in penalty fees if you broke the mortgage to save .7bps?
Based on this information, it is important to stay focused and decide ahead of time what is really important to you. When you consult with your mortgage broker, always focus on the bigger picture. Remember, this is not just for your mortgage needs, but also for every aspect in life.