What Mortgage Length is Best?
In 2022, homebuyers can customise their mortgage terms. Those who qualify for conventional mortgages can take the traditional 30-year mortgage length. Others who seek to repay their debt more quickly can opt for a length of 15 years; it depends on your goals and financial circumstances.
For some homebuyers, the 30-year length is the best one. It gives them enough time to repay their mortgage and it affords them to most comfortable terms. Those who opt for 15 years will incur higher monthly repayments. However, the total mortgage becomes cheaper since the interest rate clock ticks less. The less time the debt remains outstanding, the less time it has to accrue.
Homebuyers who opt for a 30-year term have strategies to lower their repayments too. The faster they chip away at the principal, the cheaper the mortgage becomes. So, homeowners can send weekly and fortnightly repayments. It won’t deliver as significant savings as a 15-year mortgage but it will deliver some.
To try the figures for yourself, check out our Mortgage House online mortgage repayment calculator for free. It has no strings attached. Input potential interest rates and mortgage lengths. You’ll see how the repayment changes based on different inputs. More importantly, it’s a great way to prepare for the application process.
Mortgage Length Conclusion
A home buyer has the opportunity to pick their mortgage length during the application process. The most widely used length is 30 years. However, some homeowners opt for 15. To discuss your options, contact our Mortgage House lending specialists.