As you know, there are a lot of different mortgages on the market these days, and it can be tough to know which one is right for you. Some people swear by the traditional 25 year mortgage, meaning that your house will be completely paid off in a quarter of a century. But recently, companies have been coming out with much longer term mortgages, from 30, 40 and even 50 years in length.
The benefit of these longer term mortgages is that your monthly payments are reduced – but the big problem is, you end up paying a lot more for your house in the long run. All the extra interest that is racked up over those extra years means that your house will end up being way more expensive than you ever realized.
The real kicker is that your monthly payments will not go down that much by adding years to the back end of your mortgage – usually only going down by a hundred dollars or so.
So while that extra amount might be the difference for some people between being able to afford a home or not, you should avoid these long-term mortgages if at all possible, and save yourself some money in the long term.