Short-term vs. Long-term Mortgages: Which is Best for You?

    If you’ve been watching the housing market lately, you know that mortgage rates have been a bit of a rollercoaster. They jump up, they drop down, and just when the Fed hints at lowering them, they seem to spike again. It can feel like a whirlwind.

    But while everyone is focused on the rate, fewer people stop to think about the length of their mortgage. And that single decision can make a massive difference in your financial future.

Have You Considered a Shorter Term?

    Most buyers default to the standard 30-year fixed mortgage, but have you ever considered a 15-year or 20-year term instead?

    It might sound intimidating, but believe it or not, the monthly payments on a shorter-term loan often aren’t as high as people expect. In exchange for that slightly higher payment, you are cutting 10 to 15 years off your debt. That is a decade or more of payments you simply won’t have to make.

Two Strategies to Pay Off Your Home Faster

    There are generally two ways to achieve a mortgage-free life sooner:

1. Lock in a Shorter Term

    When you officially sign up for a 15-year or 20-year mortgage, you don’t just finish paying sooner—you usually get a better interest rate. Lenders view shorter loans as less risky, so a 15-year mortgage typically comes with a lower rate than its 30-year counterpart.

2. The DIY Approach (Prepayment)

  If you are worried about committing to a higher monthly payment, you can take a 30-year mortgage but treat it like a 15-year one. By paying a little extra toward your principal every month, you can knock years off your loan term without being contractually obligated to the higher payment. This offers flexibility: if money gets tight, you can revert to the standard payment; if you have extra cash, you pay it down faster.

Which Path Is Best?

    I’ve done it all—15-year, 20-year, and 30-year mortgages. The "right" answer depends entirely on your specific scenario and your long-term plans for the house.

    This is why working with a professional mortgage broker is so valuable. They can run the numbers for you, show you the different paths, and help you decide what makes the most sense for your budget.

    If you are confused about the rates or unsure which term is right for you, let’s sit down and have a chat. I’d love to help guide you through it!