Mortgage Loan Term

posted in: Mortgage | 0

Over the years, we have had many clients question the term of the loan they took out when refinancing.

Some believe it is important to pay off the mortgage, and others feel that they can leverage their discretionary funds in other ways and prefer a long term mortgage program. Each person must make their own decision.

Benefits of a Longer Term Mortgage:

  • Increases your liquidity position
  • Allows you to manage your payoff schedule
  • Net Worth is allocated across multiple investments (including your home, but not only your home)
  • A portion or all could be tax deductible (unlike any other debt)


Benefits of a Shorter Term Mortgage:

  • Lower Interest Rate
  • Loan is paid off sooner
  • A portion or all could be tax deductible (unlike any other debt)
  • Lower total interest costs over the life of the loan


In either case, you can “self-set” your amortization schedule. Any extra amount you pay on your mortgage each month will reduce your principal balance owing on your loan.  You can increase your monthly payment at any time you like, doing it one month and not the next as your finances allow you to.

If you don’t feel disciplined enough to do it yourself, you can get a loan for any term you like.  We can make 5-year, 7-year, 9-year, 13-year, 15-year, 22-year, 25-year, 30-year loans, etc., whichever you feel is best for you.

We are happy to analyze your situation with you any time you like.