Re: Long Term Mortgage
Posted: Sat Feb 18, 2012 5:06 am
A long term mortgage can be a beneficial tool for investors and may be an advantageous proposition for the young person or family that is purchasing a first home, since spreading payments out over several more years keeps monthly payments low. The key is to use a long term mortgage to your advantage but to pay it off sooner rather than later.
Extending the repayment period can indeed make homeownership more accessible by reducing monthly pressure, especially for first-time buyers. However, as you rightly note, the real financial wisdom lies in managing it strategically—using the flexibility to your advantage while aiming to shorten the total interest burden through early repayments.