Education Articles - How many years should you hold your mortgage for?
Looking at the 50-year mortgage, it is easy to see the appeal of having a lower mortgage payment. Looking at a $300,000 fixed rate mortgage of six percent interest, the monthly payments for the mortgage will be $500, before interest. This wonderfully low payment comes at a price, and it is committing to half a century of mortgage payments, twice as long as most people. If bought in the right time, you could end up paying much less than what your property is worth. However, getting a mortgage when the market is low does not often entail 50-year mortgages. Typically, this will be done when the market is high and mortgage prices are inflated. As a result, for 50-years you can be paying too much for your house, even as it dips in value due to extraneous circumstances.
Many potential homeowners will go with a 30- or 40-year mortgage instead of a 50 year mortgages. However, while they are shorter and have the benefits of low mortgage payments, they entail long mortgages for houses that may dip in value.
As a potential buyer, you never want to force yourself into a commitment that could last longer than you. Getting a 50 year mortgage may seem like a good idea because of the low mortgage payments, but you may think differently in 10, 20 or 30 years. You will be paying your mortgage twice as long as everyone else. If you are 30 years old when you get this mortgage, you are going to be paying it until you are 80 years old! That is 15 years longer than you will most likely be working, which puts a big strain on your finances when you are living off of your pension or retirement savings.
Getting a long mortgage, longer than 25 years, can seem appealing but there is a lot more to consider than just low mortgage payments. If you are planning on getting a house worth more than you can afford over 25 years, it may be a better idea to get something in your price range.
Never try to get a mortgage longer than 30 years, you may end up paying much more than you ever expected to. It is best to go around 20 years, giving yourself ample time to pay it off, without getting too deep into the length of the mortgage.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com Jennifer Baxt, works with people who are having trouble with their credit and want to improve their score. We offer solutions to credit problems by removing negative items from credit reports. You can visit our website http://www.creditrepairbydrjen.com for more information.
Related Tags: credit repair, finance, mortgage, credit score, interest rate, fico score
Your Article Search Directory : Find in Articles
Recent articles in this category:
- How Hypnotherapy Can be Used on Children
Today Hypnosis can be termed as a branch of medicine which is quite unique, whereas in the past this - Confidence Workshops For Children
Every parent wants their children to be confident, happy, highly motivated and enthusiastic in order - Inspiring Children Using NLP
Neuro-Linguistic Programming (NLP) is one of the most successful therapies in psychology today. Init - Writing Term Papers
Students often tend to put off a written assignment, considering it to be a chore too formidable to - Naming In Term Paper
Give a descriptive name to each of your concept in the paper. Adhere using terms like "our approach" - Introduction Section of a Research Paper
Your introductions should not exceed more than two pages (typed, double spaced). See again the examp - Getting a Feedback of Your Term Paper is Important!
Get the feedback of your work! Finish your paper, having written it well in advance, so that you hav - The 1950's - Was Life Better?
Iconic TV shows like I Love Lucy, Dennis the Menace and My Three Sons seem to indicate that the 1950 - Online Classroom Systems Makes Home Schooling Even More Attractive
In the past it went without saying that you would send your kids to public schools. With public scho - 8 Helpful Tips For Surviving Military Basic Training
Getting through military basic training takes a lot perseverance. During this training it is best to
Most viewed articles in this category:
- Culinary Cooking Schools and What They Teach
Culinary cooking schools prepare you for a job in the culinary industry by providing you with the kn - How To Learn Spanish Quickly Without Moving To Spain
Learning Spanish is a popular pastime, as well as a serious goal for many individuals. Whether it's - How To Improve Your Life With An Accredited Online College Degree
With the information super highway raring full steam ahead, quality accredited online college degree - Online Bachelor Degree Programs Go Mainstream
The Internet has seen an explosion in online bachelor degree programs in the last five to ten years - Online Degree Program Just A Click Away
You want to go shopping, but your car is low on gas. You want to know your account balance, but do n - Online Paralegal Degree Will Open Doors
An online paralegal degree may offer the possibility of improving your chances in the legal professi - What West Point Military School Looks For In A Candidate
West Point is looking for well rounded young men and women who are good students, good athletes, and - The Importance of Effective Accounting Programs
In the past, small businesses like mom and pop stores were not required to maintain any sort of acco - California Schools Educators Retirement System And Lionstone Group Create Investment Fund
The California State Teachers' Retirement System (CSTRS) is the second largest public pension fund i - A Taste of China - Seattle Schools New Guest Teacher Shares Language and Culture of Her Native Hom
The Seattle schools have a new "guest" teacher. Zhu Dan arrived in the Seattle schools in January