Low Fixed Rate Mortgages

With people constantly moving or refinancing, why commit to a 30 year mortgage when most people only have a short term plan? The biggest mistake most borrowers make is asking or demanding a 30 year fixed rate, when in reality, they plan on moving or refinancing to get more cash out in the near future.

So, why demand a long term fixed rate when in reality, you have a short term borrowing plan? Did you know that 3 year fixed rate mortgage, 5 year fixed rate mortgage, and 7 year fixed rate mortgage average between 1.5% and 3.75% lower than traditional 30 year fixed rate mortgage loans?

Remember, it takes approximately 9 years to pay off 10% of your mortgage’s principal. If you plan on moving, or think you might need cash out in the future, why not borrow the cheapest money during that time? A 3, 5, or 7 year fixed rate mortgage loan is the perfect program for investors, or homebuyers who may be moving up to a larger home in the future, or just want a low payment for their short term investment.

Many first-time or new homebuyers rack up a lot of bills and expenses improving their home within the first 18 months of purchasing their home. The average American family racks up $38,000 in bills (largely due to home improvements or unplanned expenses). Unfortunately, most of this debt is run up on high interest credit cards. A higher long term fixed rate mortgage payment may hinder a family’s ability to maintain a higher payment once they have amassed this debt.

Having a low rate short term mortgage loan gives new homeowners time and more importantly, flexibility to maintain their mortgage payments at the lowest rates possible. Once the home improvement projects are completed, most of our customers refinance their mortgage with us into a long term fixed rate loan if they plan to stay in the home long term and use their equity to pay off their bills and have one low payment....