Thursday, September 24, 2020

How Long Should It Take To Pay Off A House?

If you are looking to buy your own home, you should be in it for the long haul. Mortgages usually last anywhere between 15 and 30 years, but there is no right or wrong way to pay a mortgage. You just have to decide which way makes sense for you and if the 15 years or 30 years is most conducive to your budget.

Photo by Ketut Subiyanto from Pexels

If you want to find out what type of mortgage you can afford, you can use a mortgage estimator which will take into account your annual house income, your monthly debts and what you can afford to put down on a home. This will also help you decide what you can afford in terms of years on a mortgage.


Most financial advisors recommend that no more than 28% to 30% of your total budget should go toward your mortgage payments. This means it is always crucial to consider all your other debts when finding the right mortgage for you. The mortgage estimator and mortgage consultants can help you make the correct choice because the expected time it takes to pay off the mortgage directly influences the amount of money spent on regular monthly payments.


Due to the financial crisis in 2008, which hit the housing marketing especially hard, mortgages can no longer exist over many decades, meaning the 40 or 50-year mortgage is deceased. In today’s market, guaranteed loan periods are usually 10,15 or 20 years. Some banks do give people 30-years for a conventional mortgage, but due to the now higher price of homes and the 

low-interest rates that are encouraging longer repayment periods, a lot of Americans choose a 20- to 25-year loan repayment.


Though a lot can change in a decade or multiple decades in the financial markets and in your life in general, the terms in a mortgage contract are absolute or fixed. The interest rate of your contract is to be paid for a specific length of time, so once that rate is paid off or that period time is over, then and only then does that interest stop and renegotiations are possible.


While getting a mortgage, you may think that you want to pay it off as soon as possible, however, you need to think in the long term and make wise choices. A high percentage of buyers will try to modify their contract at three years if they opt for a five-term mortgage due to life changes such as a new job, separation, or birth of a child that could have them changing homes. 



You should be keener on choosing a payment plan that is closer to the minimum you can afford as opposed to the maximum. You also can choose a flexible mortgage that will allow you to find ways to pay off your mortgage quicker. Some banks allow borrowers to make a double payment at any time and it will pay down a percentage of their principal once a year. You should also try to increase the frequency of your payments if it has little impact on your budget. You can pay $700 every two weeks instead of $1,400 a month, and it will end up paying extra toward the mortgage.

All in all, there is more to focus on than the interest rate when deciding on how long you want it to take to pay off your home. You need to focus on making a deal that makes it possible to pay off your mortgage quickly.


29 comments:

  1. I would rather have a mortgage than renting. After a period of time, when you take out a house loan, it will become yours after you fully paid it. While in renting, the house will never be yours.

    ReplyDelete
  2. Very helpful post, Thank you for sharing

    ReplyDelete
  3. I am not keen on buying a house right now but there are people who will benefit on this information and are looking to buy a house. Great info!

    ReplyDelete
  4. I think it's a very important post. I am still not sure what I think is better rent or a mortgage. I live in the apartment in a big city but I own the place. It took me two years to pay for it in full but I didn't try a lot to give as much as I could and I saved a lot before to pay for it. also it ended up being a lot cheaper than I thought it would

    ReplyDelete
  5. I am going to share this with my fiancé. We are looking into buying a home.

    ReplyDelete
  6. This is a really interesting read - thanks for sharing all of the info!

    ReplyDelete
  7. That is so true. When it comes to years of payment to be loan free there is no right or wrong. You just need to know what's right for you.

    ReplyDelete
  8. I really wish they informed us about this in school! In the next few years I'll be looking to buy a house so this is quite useful for me to know.

    ReplyDelete
  9. I really wish they informed us about this in school! In the next few years I'll be looking to buy a house so this is quite useful for me to know.

    ReplyDelete
  10. Useful post for anyone looking to take a mortgage. It's a big investment and needs proper planning.

    ReplyDelete
  11. This is such a personal. I have heard many opinions on paying off a mortgage but I feel like getting it completed early is a my choice.

    ReplyDelete
  12. We have a mortgage, and I always try to pay off more each month when I can. I'd like to have it paid off sooner rather than later.

    ReplyDelete
  13. I really enjoyed reading this post. This information is really informative.

    ReplyDelete
  14. House buying is an important decision that can be so much fun, if all the factors are considered. House payments are more than just principal and interest, and there are home expenses to account for as well.

    ReplyDelete
  15. This is a really great help especially for people who are looking forward and planning to have a house of their own but are clueless on how to do it

    ReplyDelete
  16. Great info for those who has plans on buying one right now.

    ReplyDelete
  17. I found a lot of answers here. Thanks for sharing this useful info!

    ReplyDelete
  18. We always buy rather than rent, because it's a lot more beneficial in the long run. Thanks for the great advice!

    ReplyDelete
  19. Thank you for sharing this great information. If possible, I do feel like it's better to put money towards a mortgage than renting but know that's not always possible.

    ReplyDelete
  20. I am in my 20s and wanna buy a house before my 30s.I didn't know much about mortgages before.Thankyou for such an informative article!

    ReplyDelete
  21. Our house is paid off but this would be helpful tips for those who are planning to buy a house. -LYNNDEE

    ReplyDelete
  22. This is really useful for anyone looking to buy. I'd rather buy than rent as at least the money paid on the mortgage is working for you.

    ReplyDelete
  23. Renting has its perks but it's nice to own as well. We're looking into refinancing our home.

    ReplyDelete
  24. We got a 10 year mortgage loan and it was the best for us. This is really helpful!

    ReplyDelete
  25. Well that’s definitely the traditional mindset of being in for the long haul. But I find that my businesses will allow me to pay off my mortgage 10yrs early and that’s a blessing!

    ReplyDelete
  26. My son and his wife are hoping to buy a house in the next couple of years. I'll have to share this with them.

    ReplyDelete
  27. We have mortgage in our home trying to keep it minimum so that we can have money for other expenses.

    ReplyDelete
  28. I have really been trying to focus on paying more towards my house. Interest can really creep up on you.

    ReplyDelete
  29. This is a very useful post! To be honest, I don't know anything about mortgage because my husband handles this matter every month.

    ReplyDelete