The most common long-term mortgages last twenty or thirty years. Predictability is the big plus. You know exactly how much interest you will pay over the term of the loan. Total monthly payment of principal and interest is fixed, and in early years it consists primarily of tax-deductible interest.
Stability comes at a price.
Principal balance is reduced relatively rapidly compared to longer-term loans. It offers some individuals a useful financial planning tool. Higher monthly payments make these loans more difficult to qualify for than longer-term mortgages. Typically, you can exercise your option between the 13th and 59th month of the loan should rates fall at least two percentage points below your initial rate during that period. If you want the right to adjust the rate on the mortgage without the cost of refinancing, you may have to pay a higher initial interest rate and a portion of a point.