With a shorter-term loan, however, credit hurdles may be higher, and down payment requirements may be larger.

That sounds great if the only reason she took a 30-year was because she could not qualify for a shorter-term loan.

But increasingly it has been making shorter-term loans to aid a nation's general economy.

As a result, it takes longer to accumulate equity than with shorter-term fixed-rate loans.

While you always pay less interest on a shorter-term loan, choosing which mortgage to take is not clear-cut.

Although monthly payments are higher on shorter-term loans, homeowners can pay down debt faster.

Current programs feature 2.9 percent financing for two-year loans, a shorter-term loan than most buyers desire.

Instead they may borrow from banks whose loans are shorter-term variable-interest loans.

The terms are usually 5, 7, 10, 15 and 20 years, with rates lower on shorter-term loans.

As rates slowly creep down even further, however, shorter-term loans appear to be staging a comeback.