Choosing the mortgage term that is right for you will fit both your budget and lifestyle requirements.
There are many factors which you will have to take into consideration when you select your mortgage term length. These are both in both your personal life and in the financial market.
If paying your mortgage each month places you close to the financial edge of your comfort zone there are options. You may want to opt for a longer-term mortgage. For instance, 10 years, to ensure that you will be able to afford your mortgage payments if interest rates increase. By the end of a ten-year mortgage term, most buyers are in a better financial situation. Having a lower principal balance due and if interest rates have risen, will be able to afford higher mortgage payments.
If you are considering a mortgage for an investment property, you should consider choosing a longer mortgage term. This will allow you to more accurately project your future income from the property because of stable mortgage payments.
Choosing the right mortgage term is a unique decision for each individual. Understanding your financial situation and tolerance for risk, Nicole can assist you in choosing the right mortgage term for you.