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What Kind Of A Mortgage Do I Need For Short-Term Investments?
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By Ben Afzal

Mortgage Options

Today borrowers have a wide range of different mortgage programs.

This includes loans that range from minimum payment option loans to 30 year fixed loan to 50 year mortgages.

When you get a mortgage two key features for a short term investor are how long the interest rate is fixed and the terms of any prepayment penalty.

You can get a mortgage where the interest rate is fixed from anywhere between one month and 30 years. The term for which the interest rate is fixed can be for 1 year, 3 year, 5 year, 7 year, 10 year, 30 year, or other terms.

Generally speaking the fewer years you fix the interest rate the lower the interest rate is.

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The interest rate on a 1 year fixed mortgage will usually be less than the interest rate on a 30 year fixed mortgage.

If you are planning to buy a property and keep it for a short term you may want to get a loan that is not fixed for very long.

If you buy a property as a personal residence and only plan on being at that property for 2 years then a loan that is fixed for 3 years or 5 years may work for you. You will not be exposed to interest rate risk for the term you plan to own the property.

Mortgage can also come with a prepayment penalty. Often loans that offer a

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This entry was posted on Saturday, October 21st, 2006 at 6:30 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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