When you get a mortgage, one of the important decisions you’ll make is how long you want the mortgage term to be.
Understanding Mortgage Terms
The mortgage term is the number of years you have to pay back the loan. The most common mortgage terms are 15 years and 30 years.
A shorter mortgage term will mean higher monthly payments, however you’ll pay less interest overall. A longer mortgage term will mean lower monthly payments, but in turn, you’ll pay more interest overall.
The best mortgage term for you depends on your personal circumstances. If you can afford higher monthly payments, a shorter mortgage term might be a good option. This will save you money on interest payments in the long run.
If you’re looking for lower monthly payments, a longer mortgage term might be a better option. Keep in mind, though, that you’ll end up paying more interest over the life of the loan.
How to Choose
Consider your financial goals and objectives when choosing a mortgage term. If you plan to sell your home in a few years, a shorter mortgage term might be the best option. This way, you can pay off the loan before you sell the house and avoid paying interest on the loan for longer than necessary.
On the other hand, if you’re looking for a place to stay long-term, a longer mortgage term might be a better fit. This will allow you to keep your monthly payments low so that you can afford other things like home renovations or investments.
There’s no right or wrong answer when it comes to choosing a mortgage term. It ultimately depends on your unique circumstances and financial goals. Talk to the mortgage brokers at City Centre Mortgages for the guidance you’re looking for!