Cleveland Real Estate Information: Mortgages
Mortgage Amount and Term
The mortgage amount is the amount of money you borrow from a lender
to pay for your house. The term is the number of years over which you
can pay back the amount you borrow.
The length of your mortgage repayment period will directly affect your
monthly mortgage payments.
The most popular mortgage term is 30 years. By extending payment over
30 years, you keep your monthly housing costs low. If you can afford
higher monthly payments, you can select a mortgage term that is shorter.
There are 20-year, 15-year, and even 10-year fixed-rate mortgages available
from most mortgage lenders. The longer your repayment period is, the
lower your monthly payments will be, but the total interest you pay
over the life of the loan will be more.