What Is a Forward Mortgage? A Quick Overview

Ever heard of a forward mortgage? It might sound a bit fancy, but guess what? It's just another way of saying "traditional mortgage." Yep, that's right! But hold up, don't worry if you're a bit confused.

Stick around, because I'm about to break down what exactly a forward mortgage is and why people like to compare it to reverse mortgages. 

What Is a Forward Mortgage?

A forward mortgage is basically a loan for buying a house or refinancing your current mortgage. You can choose the interest rate you'll pay up to a year before your mortgage starts. 

Besides that, it's just like any regular mortgage. You get the money from a lender based on what you can afford, and then you pay back what you borrowed plus interest over 15 or 30 years.

5 Benefits of Forward Mortgages

1. Easy to Become a Homeowner: Forward mortgages make your home-buying process easier by requiring lower down payments.

2. Helps Increase your Home’s Value: With each mortgage payment, homeowners gradually increase the value of their home, building equity over time.

3. Tax Benefits: Homeowners may benefit from potential tax deductions for mortgage interest and property taxes, helping to reduce taxable income.

4. Predictable Monthly Payments:

   Forward mortgages offer consistent monthly payments, simplifying budgeting and financial planning.

5. Extended Repayments Options:

   Longer repayment terms, typically spanning 15 to 30 years, allow borrowers to spread out their payments over time.

Final Thoughts

In summary, forward mortgages are a smart way to make owning a home a reality. By spreading out the cost over time and building equity, they empower individuals and families to invest in their future.

If you want to explore different forward mortgage options, get in touch with a loan officer today.