Choosing the best loan
Mortgage term options
Mortgage loans have varying terms. Most terms range from 15 to 30 years. There are also terms available that are less than 15 years and more than 30 years.
The term of your loan affects two things:
- The monthly payment
- The building of equity
Equity is a term used to describe the difference between the market value of your property and the loan amount. The shorter the loan's term, the higher the monthly payment and the quicker you build equity. Conversely, a longer term results in lower monthly payments, but slower equity build-up.
