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Payments are significantly lower during initial 6 month or 12-month period.

You can improve your cash flow.

During this initial period you can improve your credit.

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These mortgages can become expensive after initial period of  6-month or 12- month. It is likely that you will be able to get a better mortgage as your credit improves and your cash flow has improved.

The 2-3-5 year fixed mortgages provide peace of mind for the fixed period of 2-3-5 years.

You can enjoy improved cash flows for 2-3-5 years and catch up with your debt payments.

A period of 2-3-5 years is sufficient to improve credit history, show a proven payment track and improve creditworthiness.

The 2-3-5 year fixed mortgages convert to ARMs at the end of the fixed term of 2-3-5 years. It might be an option to get a new loan with different terms before these mortgages convert into ARMs.

These fixed term loans provide mental peace and financial security for the fixed term. If the rates go up, you are not affected.

It provides a certainty that loan will be paid off at the expiry of the fixed term of 15-20-30 years, as applicable.

These mortgages carry higher rate of interest if compared to ARMs during the introductory period, and 2,3,5 year fixed rate loans.

15-20-30 year fixed loans are suitable if you do not intend to refinance in near future for cash out, debt consolidation or home improvements.

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Less bureaucratic and time consuming.

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Less stringent qualification guidelines.

Focus on equity and net worth of the borrower.