What is a Flex Term?
Summary: A flex term allows borrowers to tailor their loan term based on their unique financial situation. The flex term gives borrowers the opportunity to customize the length of their home mortgage loan, between 8 and 30 years, with a fixed interest rate.
A flex term mortgage allows borrowers to customize the length of their loan, between 8 and 30 years, with a fixed interest rate. Borrowers can use a flex term mortgage on FHA, VA, and all conventional loans. The flex term mortgage is not available on jumbo loans.
To qualify for a flex term, you must meet the requirement of the loan type you are applying to. For example, if you are looking into an FHA mortgage rate and decide to go with it, you must meet the FHA requirements to qualify for the flex term loan. If you also qualify for the 15-year and 30-year fixed rate loans, then you will likely qualify for the flex term as well.
Flex terms offer borrowers more flexibility and control. For example, if you have been paying towards your 30-year fixed rate mortgage for six years and decide to refinance to a lower interest rate, you can refinance and set your loan repayment term to 24 years instead of restarting the clock to 30 years or cutting it down to 15 years. Flex terms are also a great option for individuals that see themselves retiring in the future and want to pay off their home by retirement. If you have 12 years until you retire, you can set your loan term to 12 years instead of the traditional 15 or 30-year fixed rate loan term, allowing you to tailor your loan based on your situation.
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