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Mortgage Lengths
How Long Will You Be Paying Off Your Mortgage?
Mortgage repayment schedules are broken down into two different types of lengths: amortization and term. The choices you make can — and will — dramatically affect how these payment periods work, and what your bottom line will be.
Period Vs Term
Amortization Period
Amortization period refers to the total length of time it will take to pay off your mortgage. Typically, this goes up to 25 years, but shorter and longer periods are available based on eligibility and affordability. The longer your term, the smaller your monthly payments; the shorter the term, the less interest paid.
Mortgage Term
During the course of your amortization period, you will sign multiple contracts, potentially with various lenders, that will dictate how much interest you pay — these are mortgage terms. These terms can range in number of years, as well as the type of rate chosen during that span of time. When your term is up, you need to renew your mortgage based on how much of your pre-interest home loan, or principal, remains.
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Do you have questions about your mortgage eligibility? Or, maybe you’re ready to apply for a mortgage or get a mortgage quote? Contact me anytime via call, text, or contact form. Find out why so many people trust mortgage agents to handle their home loans.