Considering any shorter term mortgage?

"... when considering any shorter term mortgage, make sure to ask yourself the right questions .."

How Much Will I Save on My Interest Rate?
It is a fact that shorter term mortgages may provide you with a lower interest rate and overall lower interest payment. However, there is a trade off, be prepared for a larger monthly payment.

Should I Do A Longer Term Mortgage and Make Extra Payments?
For example, a 15 year mortgage locks you into a set payment. With a longer term mortgage you can make extra payments which will decrease the number of years of mortgage payments, but you need self discipline to actually make the payments. You really have to look yourself in the mirror to answer this question.

What Is the Benefit of More Equity Sooner?
The benefit of home equity is that it provides a ready source to borrow against. Often it makes sense to borrow against yourself (via your home equity).

How Long Do I Want To Have A Mortgage?
Whether you are young or mature, you may want to eliminate this obligation sooner. You may, for example, want to time at the end of your mortgage to enjoy your retirement. Consider the benefits of earlier relief from this commitment, but don't forget to consider the income tax implications.

Should I Use My Home As A Primary Investment?
By obliging in to a shorter term mortgage you are effectively increasing your exposure to real estate, perhaps leaving less for other investments. Ask yourself, "How diversified do I want my portfolio to be" before making this financial commitment.

In any financial plan, seek expert help. Contact me for help. kcsalley@gmail.com