Selecting The Length of Your Mortgage
When you are going to be purchasing a home for the first time, you probably don’t give much thought to the your mortgage loan term. Most folks certainly focus on what would be considered more important things like the interest rate they will receive.
Picking the length of a mortgage would considered way down the list of imporant financial considerations. But should it? Customizing the time frame of your loan could save you a lot of money over the life of the mortgage.
This is money your could be putting elsewhere including investing it. Most buyers automatically assume that a thirty-year mortgage is their only option. While this used to be the only choice borrowers had, today there are a lot more options.
You can pretty much tailor the length of your mortgage to what you desire. In the article at Maximum Real Estate Exposure, you can see why it might be wise to select something other than the traditional thirty-year loan.
Maybe you will want to go with a lower number of years to save on interest expenses. There could also be a major life milestone that you would like to coinside with the end of your mortgage. It possible the sooner termination could be for any number of reasons.
Whenever setting a mortgage loan term it is always wise to think about your financial goals.