| Commonly, the standard term is considered to be 25 | | | | much interest to the bank. Eventually your equity will |
| years. However you may choose a different term if it | | | | grow so slowly, that your home will never be a good |
| suits you and the lender agrees that you can afford it. | | | | investment, helping you to save and build wealth. |
| You have to keep in mind that with a shorter term, you | | | | There are many personal and emotional reasons |
| will have higher monthly payments but pay less in total. | | | | instigating one's family to buy or build a house. But |
| While with a longer term, you will pay less each month | | | | financial considerations also play a big part in the |
| but more in total. | | | | decision, too. A home should become your foundation |
| Above all beware of making financial commitments | | | | for building wealth. As you are progressively paying |
| that continue past your retirement age unless you are | | | | back your mortgage, your home should quickly |
| sure you will be able to afford the payments. You | | | | become one of the most valuable things you own. |
| should think twice, or even more, before taking out a | | | | Besides the equity you create by paying off the loan is |
| 40-year loan to buy a house. | | | | a type of savings that you can use to send your kids |
| With the skyrocketing price of properties many middle | | | | to college or ensure a comfortable retirement. But if |
| class family are attracted by this kind of mortgage | | | | you have a 40- and 50-year loans. You don't build |
| deals. But the extra 10 or 20 years won't reduce the | | | | wealth because you have to give really too much of |
| monthly payments all that much. And you will pay so | | | | what should be your money to the bank. |