Advantages of Shorter-Term Mortgage Loans

Kingwood, TX, 2022-Jan-10 — /EPR Network/ — We may have heard about long-term mortgages, yet short-term adjustable mortgages are becoming more common. If you plan to buy a house soon, mortgage lenders think it may be smart to consider getting one of these loans right now.

Short-term adjustable mortgages are becoming popular cause they are cheaper, more flexible, and easier to qualify for. 

Shorter-Term Mortgage Loans

A short-term adjustable mortgage is available for a period of up to five years with a low fixed rate which is shorter than long-term mortgages. A debtor has the option of paying an additional premium to extend the loan up to seven years. It’s also possible to settle the rate during this period.

Advantages of Shorter-Term Mortgage Loans

• Lower cost: The interest rates are lower than on traditional home loans so that you can pay less over the life of the loan. This is one of the main advantages of this type of loan.

• Flexibility: These loans are flexible and easy to mortgage refinances if you need to because they allow for principal repayment. 

• Easy to qualify for: Another benefit of this type of loan is that it is easy to qualify for traditional financing. Some people look at these loans due to not having enough savings for down payment or getting traditional financing because of bad credit history.  

Short-term mortgages are built for buyers who cannot qualify for traditional financing. If you don’t have savings to put down on your home purchase, then going with these types of loans can help you buy a home even if you do not qualify for other types of loans from any local mortgage lenders.