A short-term, fixed-rate mortgage - generally 5 to 10 years. Principal and interest payments are amortized over a 30-year period for affordable monthly payments, with the balance due as a lump sum at the end of the term.
- Traditionally at a lower rate than the 30-year fixed-rate mortgage.
- Stable monthly payments.
Use for: Financing a home you plan to sell or refinance your home within 5 to 10 years.