Why do most people get a 30 year mortgage?
I know that a 30 year mortgage makes the monthly payments less which is more affordable but you end up paying more in interest. I’m planning to buy a house but not until years from now. I just like to be aware so that I know what I’m working for. I want to save and know what to expect. What about paying more on the mortgage payment, in that case is it best to get a 10, 15, 25 year mortgage or 30 year? It’s confusing to me.
Best answer:
Answer by Richard M
Find yourself a mortgage calculator on line somewhere and check out the various options. It should tell you how much interest you will be paying over the amortization period. That will give you the best answer without bias.
Having figured this same thing out a few times, I will tell you that the best deal works at somewhere between 12 and 13 years. At that point your payments are not unreasonable and the interest is reasonably low.
Something else to remember when you buy a house is that if you make bi-weekly payments instead of monthly payments the payback is much quicker. Again, run that through the calculator; don’t just take my word for it.
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