The right mortgage term may seem difficult to choose, but it will influence your financial health for years to come. First-time buyers may find the mortgage options overwhelming, but it is important to pick one that meets your needs. Knowing which mortgage term fits your lifestyle and gives you an advantage of homeownership is beneficial.


The standard mortgage term is 30 years, but there are other options. The length of your mortgage will influence your monthly payment. Longer mortgages typically lower your payment, but they can boost your interest owed over time. The length of the mortgage that you choose may depend on a few factors:

  • How long you plan to stay in the home
  • The amount of interest rates
  • The flexibility of your schedule


The term short-term refers to a loan for less than 20 years. A short-term loan is perfect for consumers who don’t expect to settle in one location for more than five years. If you are moving to a new city for your job, it might be wise to purchase a home with a short-term mortgage, which will give you the option to sell it in the future if needed.

A long-term mortgage is a loan paid off over 30 years. Homeowners who buy homes using a long-term mortgage can expect a lower monthly payment, but they are responsible for paying the loan off over time.


A fixed-rate mortgage is the easiest mortgage to understand. This kind of mortgage has an interest rate that does not change for the life of the loan. Interest rates remain fixed when the Federal Reserve does not increase or decrease the interest rate. If borrowers are looking for a stable, predictable loan, then a fixed-rate mortgage is the best option.

A fixed-rate loan is best for homeowners with a steady income, planning to stay in the home long-term, and who don’t want to deal with fluctuations in interest rates.


The adjustable-rate mortgage or ARM is a great option for a lower monthly payment. With an adjustable-rate mortgage, your interest rate can change based on several factors, such as market changes and economic conditions. The initial interest rate is typically low on an ARM loan, which gives you a lower payment in the beginning.

Adjustable-rate mortgages vary in their rates, but you can expect the rate to increase. Adjustable-rate mortgages are best for borrowers with low-interest rates and who plan to sell their homes before the rate increases.


The hybrid mortgage is a combination of a fixed-rate and an adjustable-rate mortgage. A hybrid mortgage has an initial fixed rate, which can last for up to five years. The base rate can remain the same for the rest of the loan. The rate may be adjusted if the lender changes the interest rate. The interest rate can change once or more, based on the lender’s changes and the market factors. The hybrid rate is a great option for borrowers who want the security of a low, fixed initial rate but think they may want to refinance in the future.


Mortgages can seem complicated, but they are essential for homeowners to consider. When you choose your mortgage terms, the loan length should be a major factor. If you are unsure which mortgage term to choose, discuss your options with a loan consultant at Cross Timbers Mortgage. We can help you identify the best mortgage terms for your budget and lifestyle.

At Cross Timbers Mortgage, we help our customers find the right mortgage for their specific financial goals. Our straightforward loan process starts with you communicating your needs, while we listen. Then we move forward with your financing, striving to exceed your expectations every step of the way.  The goal is to provide the best guidance, speed, and efficiency in every loan we process, from application to closing. We are your trusted loan experts that you can rely on to help make your dreams of home ownership come true. If you want to apply for a home mortgage in Oklahoma or Florida, we’ve got you covered! Get in touch with us today and let us know how we can help!