What are short term mortgages?
Short term mortgages are loans that have a shorter term than traditional mortgages. Instead of the standard 25-30 year term, short term mortgages are designed to be paid off in a shorter period, typically ranging from a few months to a few years. These loans are often used for purchasing or refinancing property, and they can provide more flexible repayment options compared to traditional long-term mortgages.
Short term mortgages are loans designed to be paid off in a shorter period, usually ranging from a few months to a few years. These loans are typically used for purchasing or refinancing property, and they can be a great option for those looking for more flexible repayment options. At Ownright Custom Finance, we offer a variety of short term mortgage options to help you find the financing you need for your property goals.
How do short term mortgages work?
Short term mortgages work in a similar way to traditional mortgages, with the main difference being the repayment term. The loan amount is based on the value of the property, and the borrower makes monthly repayments to pay off the loan. Interest rates for short term mortgages can be fixed or variable, depending on the lender and the specific loan terms.
Benefits of short term mortgages
One of the main benefits of short term mortgages is that they offer more flexible repayment options. Because the loan term is shorter, borrowers can often pay off the loan more quickly and save on interest payments. Additionally, short term mortgages can be a good option for those who need financing quickly, as the approval process is often faster than traditional long-term mortgages.
Drawbacks of short term mortgages
One potential drawback of short term mortgages is that they often come with higher interest rates compared to traditional long-term mortgages. Additionally, because the loan term is shorter, monthly repayments can be higher, which may not be feasible for some borrowers. Finally, short term mortgages may not be the best option for those who plan to keep the property for an extended period, as they will need to refinance the loan once the term is up.
Uses of short term mortgages
Short term mortgages can be used for a variety of purposes, including:
How to Apply for a Small Business Loan
To apply for a short term mortgage with Ownright Custom Finance, simply fill out our online application form or contact us directly. Our experienced team will work with you to determine the best loan option for your needs and guide you through the application process.
Great options and great rates
When you’ve tried with every other lender or bank and not been satisfied, that’s where we come in. We’ll create a tailored and customised solution for you!
Did you know that according to recent statistics, approximately 80% of small businesses in Australia take out business loans to help fund their growth and operational costs?
