When To Avoid A Short Term Mortgage
The number one situation where you should avoid a short term mortgage is if you are buying a property for investment purposes. By this, I mean you intend to sell the home in a few years. You might be buying a fixer upper for example. In such a situation, there is little benefit to higher monthly payments associated with the shorter term. Since you will be selling in a few years, the savings on the interest paid is also negligible. If you are investing in a home to flip it in a few years, try to get the longest possible term so you can minimize your cash expense.