Gresham Home Buyers – How Long Will You Be Paying Off Your Mortgage?
Gresham home buyers will know that purchasing a home is a huge step. It is a big financial responsibility and a way to secure your family’s future. What exactly does that future look like, though? Part of that is going to be dependent on the mortgage term you choose.
What Is A Mortgage Term?
A mortgage term, also known as a loan term, is the duration of your mortgage or the period of time it will take to pay off the mortgage in full, based on regular monthly principal and interest payments. Figuring out which mortgage term you want to take on for the purchase of your Gresham home is important because it determines both your monthly mortgage payments and the amount of interest you will pay.
What Are My Mortgage Term Options? What Are The Differences?
Perhaps the most popular mortgage term is 30 years. While it might seem nice to have that much time to pay off your Gresham home, however, it might not be the best choice in the long run.
When you opt for a shorter mortgage term – say, 15 years instead of 30 – it is true that your monthly payments will be higher in order to pay off your mortgage in a shorter amount of time. However, because you’ll be paying less interest, the monthly cost for a 15-year mortgage will not double the cost of the monthly costs for a 30-year mortgage. It is quite possible, in fact, that the total you spend over a 15-year mortgage term is significantly less than what you would pay over a 30-year mortgage term due to that interest.
It is important, however, that Gresham home buyers do no stretch themselves too thin. You may be tempted to take on a shorter mortgage term to pay off the debt more quickly and with less money, but you must be sure that you will be able to keep up with the higher monthly payments.
Why Is A 30-Year Mortgage Term Popular?
30-year mortgage terms are often more stable and predictable. That is in part because 30-year mortgage terms often feature a fixed rate for the entire duration. However, it is important to note that not all 30-year mortgage terms follow this rule of thumb. Some may only have a fixed rate for part of the term – like the first 5 years, with the last 25 having an adjustable rate. In any case, it is crucial that Gresham home buyers go over the specifics with their lender.
Are There Other Mortgage Term Options?
Of course there are! In addition to the more common 30 and 15-year mortgage terms, there are also mortgage terms that span 5, 10, 20, 25, or 40 years. In the end, each home buyer has to choose the option that works best for their particular situation.
Home buyers in Gresham should discuss their options and preferences in detail with a professional before agreeing to any mortgage terms. Gresham locals looking to buy a home can rely on Stonebridge Mortgage Group for expert home buying advice. To learn more about mortgage terms, consider visiting our loan officer.
Stonebridge Mortgage Group Offers Guidance On All Mortgage Matters
For professional assistance with mortgages and related services, look no further than Stonebridge Mortgage Group. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. We help get you pre-approved for a mortgage and help with your real estate loans and other mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and is located in Gresham, Oregon. Don’t wait to get quality assistance with buying your home!