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In addition, lenders will review your employment history to ensure you have a reliable stream of income. Short-term loan borrowers generally need to earn a higher income than long-term loan click to see more for the same loan discover loans because they have much higher monthly payments.

Based on your income, credit score, debts, and other figures, you may not qualify for a short-term loan because of the higher monthly payments. Instead, a lender might suggest long-term mortgage loans that allow you to purchase your dream home without the additional burden of larger monthly payments.

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While the pros of owning your home faster and paying less in interest are appealing, there are several disadvantages of short-term loans, such as:.

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