Picking a Loan Term For a Home Mortgage

Choosing the Right Length of a Mortgage

When you are purchasing a home probably the last thing you think about is the length of your mortgage. There are too many other more exciting tasks at hand like actually finding the home of your dreams, setting up inspections, having the relatives take a look, etc. Not until these things happen do buyers really start to focus on the minutia with their loan.

The standard in the mortgage industry is a thirty year fixed loan. This is the loan standard in the industry. More people choose a thirty year mortgage than any other kind of loan. Those who choose a fifteen year mortgage usually do so because they are able to afford the larger monthly payment. By going with the shorter term they are able to pay off their mortgage quicker saving tons of cash.

More and more lenders are now allowing borrowers to customize their loan term. Want a loan to last twenty four years for some reason? There are now more options available to make that happen. So how do you pick a home mortgage loan term that makes the most sense? In the article at Active Rain, see some excellent advice on how you can select the length of a mortgage than makes the most sense for your financial situation.

What works for one party, may not be the best for someone else. The article takes you through some of the common scenarios to think about. Using your judgement is an important consideration as you could have the loan for many years to come.

Take a look and if you enjoy the tips, please share the article with someone who may find it useful.