Big as 1% and short as 10 years

It’s time to buy a house. What do you think? Can we afford the payments?

This is how most of us purchase a home, with the payment in mind and length of mortgage second.

One percent seems so small. One percent is a penny out of a US dollar. Until one penny out of every dollar equals $63,896. * What about half-a-percent or three-eighths of a percent?

What do you do, make monthly payments of $1,807 and pay the home off in 20 years, or choose to pay the home off in 30 years by making payments of $1,420?

The best advice in regards to dealing with mortgages, always try to choose the term that is the longest, the interest rate that is the lowest and, most importantly, to invest the rest!

 

 

 

*($300,000 mortgage for 30 years at 2.93% vs $300,000 mortgage for 30 years at 3.93%)

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