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The higher monthly costs make the 15-year loan available mainly to affluent borrowers. This has helped keep default rates low, making it a good intermediate term asset for portfolio lenders and attractive to investors
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∙ 13y ago
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Why are the home mortgage loan rates higher on longer term mortgages than on shorter term mortgages?
Loan rates are higher on longer term mortgages because banks have to insure the cost of the loan for much longer than with short term mortgages. There are many advantages to shorter term mortgages. Not only do you have a lower interest rate, but you can potentially save thousands in interest since the loan period is much shorter.
What is an advantage of a shorter-term loan?
less interest paid...
What is an advantage of a shorter-term (such as 15 years) loan?
less interest paid
What is a advantage of a shorter-term such as 15 years loan?
less interest paid
What is the main reason for bad credit mortgages?
Bad Credit mortgages are for people who do not qualify for traditional mortgages. These tipically have shorter terms with higher interest rates.
Why are the home mortgage loan rates higher on longer term mortgages than on shorter term mortgages?
Loan rates are higher on longer term mortgages because banks have to insure the cost of the loan for much longer than with short term mortgages. There are many advantages to shorter term mortgages. Not only do you have a lower interest rate, but you can potentially save thousands in interest since the loan period is much shorter.
What is an advantage of a shorter-term loan?
less interest paid...
What is an advantage of a shorter-term (such as 15 years) loan?
less interest paid
What is a advantage of a shorter-term such as 15 years loan?
less interest paid
What is the main reason for bad credit mortgages?
Bad Credit mortgages are for people who do not qualify for traditional mortgages. These tipically have shorter terms with higher interest rates.
What does the term jumbo mortgage refer to as it relates to home mortgages?
A jumbo mortgage is a term used to describe a home mortgage that is bigger that most mortgages. These mortgages exceed the amount that the FNMA and FHLMC will purchase.
What is a times a in a shorter form?
a times a in a shorter term would be a2.
Should president's term be shorter?
no
Is shorter-term hyphenated?
yup!! :)
Who may wish to take advantage of the HECM reverse mortgage?
The term HECM means Home Equity Conversion Mortgage. Unlike other reverse mortgages the HECM is a reverse mortgage for seniors that follows all of the guidelines of FHA and HUD.
Is residential mortgage close-end mortgage?
Normally residential mortgages are not closed-end mortgages. By definition, closed-end mortgages cannot be prepaid but most residential mortgages in the U.S. do have a prepayment clause that allows the borrower to prepay the balance of the mortgage (perhaps by paying a penalty).In Canada, residential Mortgages could be open or closed depending on the need of the client. In some cases where the client is unsure what the time frame would be for them to repay the mortgage and does not want to get stuck with early repayment penalties, I suggest them an open mortgage.But if they are pretty much sure that they are okay to go the full term of the mortgage 1 - 5 years, then a closed is preferred as to give client the advantage of a better interest rate.
What sport does advantage belong to?
The term advantage belongs to tennis.
