Pay Attention To Mortgage Length

It is a simple question, but one most people fail to ask themselves. How long do I intend to keep this home and mortgage? The question and answer may seem somewhat irrelevant, but it is not. This is particularly true if you only intend to stay in the home for a relatively short period such as five years. Why? Well, assume you go with a 30 year fixed loan for your mortgage. How much of the principal are you going to pay off in 5 years? A sliver. Most of the payments during the first five years are going to go to the interest on the loan. So, you need to make a choice. Maybe you go with a 10 year term to get more of your payment applied to the principal. On the other hand, maybe you find the cheapest loan with the lowest monthly payments because it really isn’t going to matter that you aren’t paying off much principal since the same result will be reached with the fixed loan. There are different scenarios to be considered. My point is you should make sure you are thinking about it!