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> mortgage resources > INTEREST RATES AND LIFE OF THE LOAN |
Interest Rates and the Life of the Loan Typically the maximum life or term of a mortgage is 30 years, but almost any other time period can be negotiated, with shorter loans sometimes attracting cheaper interest rates. A lower interest rate and shorter term on the loan means you will pay less interest to the lender over the term of the loan - SAVING YOU MONEY! However, monthly repayments on a shorter loan will generally be higher than those on the same loan set for a longer time period. The higher payments are obviously required to repay the debt sooner. Conversely, a long term loan with smaller payments can be easier to budget for and means less lifestyle sacrifices will need to be made. If you can afford to pay off your loan sooner, then a shorter term loan is often more advantageous. Find our more about ... Fixed Rate vs. Variable Rates
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