25 or 30 year mortgage? Do 5 years matter?
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cassius
Apprentice
Joined: 11 Mar 2004
Posts: 7
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 Posted: 12/16/07 - 10:08 Post subject: |
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| Good day! I'm considering buying a house with my family. Because we don't have enough amount of money we would take a mortgage. We talked to some professionals and collected quite useful information. There are lots of options and we could use a professional advice. Should we take a mortgage on 25 or 30 years? Is there a very big difference? Do 5 years matter? |
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angelle
Apprentice
Joined: 06 Jan 2006
Posts: 12
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| Posted: 01/15/08 - 03:55 Post subject: |
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| When you decide to buy a house on mortgage you get a mortgage loan that’s paid over 15 or 30 years. The 30 years loans are the most popular nowadays. The reason why they are so popular is that the monthly payments are lower then in other cases. Also, you can qualify for the bigger loan if you make an application for the 30 years mortgage loan. On the other hand, the disadvantage of taking the 30 year mortgage is that you have to make monthly payments for 5 extra years. You will also have to pay a lot more total interest over the life of the loan. In some cases you are only qualified for the 30 years mortgage loan. If this is your case also, you will not have the problem to choose because you will not have the choice to make. If you qualify for both, my advice would be to take 25 years mortgage loan. This way, you will have to make larger monthly payments but you will save a lot of money at the end. Also, you will free yourself of a burden above your head for paying mortgage 5 years more. |
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