Like other mortgage loans all the regulatory fees, rates and terms apply, however, homeowners that opt for a short-term loan typically pay a higher payment toward the principal but at a lower rate of interest.
Short-term loans are 15-year mortgage loans, instead of the common 30-year mortgage loan. Quite simply because you are paying more into the principal amount your equity in the home goes up and the amount of interest you pay out is lowered.
This is a fantastic opportunity for those that qualify financially to refinance to a shorter term. If you are not sure, you can manage the payment there are several options to try on mortgage calculators or contact us to help you work through your cash flow and financials.
Short-term loans can free up money you could potentially need for achieving important financial goals such as saving for your retirement, saving for a vacation or for putting your child through college and helping with expenses.
A shorter loan terms means knowing you have money in your home based off current market values and what you owe on your home. If you are planning to sell your home, this could mean a bigger down payment on your next dream home.
While the benefits are terrific for those with the lifestyle that can manage a larger amount of payment each month there are still some drawbacks to short-term mortgages. Not many lenders offer short term mortgage loans. Call us at Lendevity to discuss your potential refinancing needs and see if you qualify for a short-term loan.
Get qualified today for a short-term mortgage loan. The same information is needed that is required for the 30-year loan:
If you want to avoid the PMI (Private Mortgage Insurance) be sure to have a down payment of 20% or more. Do not forget to have your closing cost as well. Contact us today at Lendevity to help you with your short-term mortgage.