How would you like to customize the term of your mortgage to coincide with other financial goals you may have such as retirement, college, or a planned move?
Historically, homeowners seeking a mortgage have either chosen a 30 year mortgage or a 15 year mortgage. At one point, all mortgages were 15 year mortgages and over time things evolved so that 30 year mortgages became the norm.
A shorter term allows more of each payment to be applied to principal and less to interest. While a 30 year mortgage offers the lowest monthly payment, a 15 year mortgage will save tens of thousands or even hundreds of thousands of dollars in interest over the life of the loan depending on the loan amount. It also adds the financial security that having a paid off mortgage can provide.
We can offer a mortgage term for any number of years a borrower chooses, from 10 years up to 30 years. If the payment on a 15 year loan is a stretch for your budget, we can look at an 18 year or a 23 year loan. This is possible on both a purchase and a refinance.
This flexibility allows an individual to better match a mortgage liability, which is often the largest liability an individual has, with other parts of their financial plan and budget. This is particularly effective for those who are trying to reach financial goals for retirement, such as having no mortgage debt, and want the right tools to make it happen.
We can assist our clients with a free mortgage analysis that will include unlimited scenarios to find the one that may fit your situation. Contact us today to find out more about this strategy and how it might help you reach your financial goals.