The market will dictate the purchase price and length of time to sell, and if you haven’t been in the home very long, you could end up losing money on the deal in your urgency to sell. It’s something to think about before you start your house hunt, since the mobility that renting provides can be an
advantage when it comes to dealing with such issues. The length of time you expect to own your home also affects your down-payment and closing strategies, as well as the type of mortgage you choose. For example, a fifteen-year mortgage will require larger monthly payments than a thirty-year loan, but you’ll see your principal loan amount reduced sooner if you take the shorter-term loan. If you plan to stay in the house five years or less, you may want to consider an adjustable-rate mortgage (ARM)—which offers lower interest rates and helps the owner start paying off the loan principal balance sooner—but if you plan to live in your home for the next ten to twenty years, you may want to lock into a fixedrate mortgage. There are also prepayment penalties to watch out for (charged by the lender if the loan is paid off before maturity), and if you sell your home before the loan matures, you must also pay the remaining balance of the loan.