What is a short term fixed rate first-mortgage home loan? How to get it online?

One of the most important decisions when buying a home is choosing the right type of mortgage, considering its advantages and disadvantages. One type of mortgage that may be right for some buyers is a first mortgage home loan. Let’s take a closer look at what this type of loan is and how to get it online.

What is a short-term fixed-rate first mortgage home loan?

A short-term fixed-rate first mortgage home loan is a type of mortgage in which the interest rate remains the same for a set period of time, typically 3 to 10 years. During this time, your monthly payments will remain the same, providing you with stability and predictability in your budget. This is in contrast to adjustable-rate mortgages, in which the interest rate can change periodically, potentially resulting in higher monthly payments.

The term “first mortgage” refers to the fact that this loan is the primary loan used to purchase a home, as opposed to a second mortgage or home equity line of credit (HELOC). This means that the lender has the first claim on the property in the event that you default on your payments.

Short-term fixed-rate first mortgage home loans are typically offered with repayment periods of 15 or 30 years and are available from a variety of lenders, including banks, credit unions, and mortgage brokers.

Advantages of a short-term fixed-rate first mortgage home loan

There are several advantages to choosing a short term fixed rate first mortgage home loan:

Predictable payments: With a fixed-rate mortgage, your monthly payments will remain the same for the entire term of the loan, providing you with stability and predictability in your budget.

Lower interest rates: Short-term fixed-rate mortgages typically have lower interest rates than longer-term fixed-rate mortgages or adjustable-rate mortgages, which can save you money over the life of the loan.

Builds equity faster: Because you’ll be paying down more principal each month than you would with a longer-term loan, you’ll build equity in your home faster.

Less interest paid overall: Because the loan term is shorter, you’ll pay less interest over the life of the loan than you would with a longer-term loan.

How to get a short-term fixed-rate first mortgage home loan online

If you’re interested in getting a short-term fixed-rate first mortgage home loan, the good news is that you can do much of the process online. Here’s how to get started:

Check your credit score and shop around: Before you start applying for a mortgage, you’ll want to check your credit score to know what kind of interest rates you can expect to qualify for. Once you know your credit score, you can shop for lenders.

Pre-approval: Once you’ve found a lender you’re interested in working with, you’ll want to get pre-approved. This will involve submitting an application and providing documentation like your income, employment history, and credit history. Getting pre-approved can give you a better idea of how much you can afford to borrow.

Application: Once pre-approved, you can submit a formal application for your mortgage. You’ll typically need to provide additional documentation, such as proof of income, employment history, and tax returns.

Closing: Once your application has been approved, you’ll begin the closing process. This will involve signing many documents and paying closing costs, typically including appraisal fees, title insurance, and attorney fees. The closing process can take several weeks, but once it’s complete, you’ll officially own your home and can begin making your monthly mortgage payments.

In conclusion, a short-term fixed-rate first mortgage home loan can be a great option for homebuyers who want stability and predictability in their budget and the ability to build equity in their home faster. By shopping around and applying online, you can find the right lender and get pre-approved for your mortgage quickly and easily.

Just remember to check your credit score first and promptly provide all the necessary documentation to the lender to ensure a smooth and successful mortgage process. When it comes to the best platform to get short term fixed rate first mortgage home loans, Recashloan offers competitive interest rates and flexible repayment terms, making it an excellent choice for those looking to finance their dream home.