How many years should you hold your mortgage for?

When the housing market is hot, it is not uncommon to see potential home owners thinking about getting a 50-year mortgage to lower the cost of mortgage payments. Like any new style of doing something, there are those who swear by it and those who do not. However, when looking at mortgages, how long is too long? Generally, 25 years is the standard rate for a mortgage as it gives relatively low interest rates, while at the same time not cementing the homeowners into a long mortgage that they may not be able to get out of. 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

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