Three times in life when a short-term mortgage makes sense
June 28, 2020

Three times in life when a short-term mortgage makes sense

There are times in life when a short-term mortgage may be a good choice for you and your family. This is particularly true when your current mortgage is coming up for renewal and you have some big plans. That’s why we offer highly flexible one- and two-year mortgages.

Three of the most common reasons why you may want to meet with a Mobile Mortgage Specialist to discuss your renewal options and the advantages of a short-term mortgage include:

  1. You plan to sell your home within the next year or two.
  2. You plan to renovate your home around the same time as your current mortgage expires.
  3. You are looking to purchase a second property.

1. Selling soon

Your mortgage is up for renewal, you’re thinking about selling, and you know that properties in a hot market sell quickly. Maybe you need some time to consider your options, especially if you are waiting on a decision about employment, taking time to research your options, or waiting for the school year to end. A short-term mortgage, such as the Concentra 1- and 2-year closed mortgage can buy you the time you need to make the best long-term decision about how to finance your next home.

2. Renovating soon

If there’s a major renovation on your to-do list and you expect to borrow money in the next year or two, a short-term mortgage creates opportunities. The money you need for renovations and your current mortgage could be combined into a new, more cost-effective mortgage by refinancing the entire balance. Now is the time to explore all your financing options and choose the most cost-effective option to get everything you want.

3. Buying a second property

Buying a vacation, rental, or recreational property takes planning. For example, there may be tax implications if you plan to rent the location from time to time. And there may be family estate planning considerations if you plan to pass the property to future generations. A Mobile Mortgage Specialist can help you determine how to finance additional properties while paying off the ones you own in the most cost- and tax-effective way.

These are big life events that require financial planning and the advice of a Mobile Mortgage Specialist who can help you save money on additional costs, fees, and penalties that may result from having to opt out of a longer-term mortgage.

Create a plan that works for you

If you’re holding off on committing to a five-or-more-year mortgage because you have some big plans for the near future, consider booking an in-home consultation with a Concentra Mobile Mortgage Specialist. Our expertise is finding the best way for families to arrange real-estate financing that takes advantage of every short- and long-term opportunity.

The content of this article is provided for general information purposes only. It is not intended to be specific advice regarding legal, accounting, financial, or tax matters on which you should rely. You must obtain more specific or professional advice before taking, or refraining from, any action or inaction on the basis of the content in this article. We accept no liability for any loss or damages arising out of your use or reliance of the information in this article, including liability towards third parties.

© Concentra Bank, 2020
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