Most people have a thirty-year mortgage – that is the most popular type. There is a twenty-year mortgage option! The twenty-year mortgage has an interest rate that does not change and the rates are typically a little lower. You will also have paid less interest but a higher monthly payment. A huge perk to the twenty-year mortgage is that you will own your home faster and you will save money by not having to pay as much of interest.
Saving money is always something you want to try to aim for! Again, you’re saving money by not having to pay so much in interest. In some cases, the monthly payment may not even wind up being more expensive than a thirty-year mortgage option. Also, some of the twenty-year mortgage options have a lower interest rate.
Some other things to consider are if you plan to retire soon and think you’ll be on a fixed income. If that is the case, a shorter mortgage would be helpful. Also, if you want to build equity and purchase another home in the near future, you would want a mortgage with a shorter length of time.
There are a lot of things to consider when you are trying to decide on which type and length of mortgage you want to have. As always, we are here for you throughout the whole process!