30 Year Mortgage – The Pros and the Cons
It is everyone’s dream to buy their very own house and a 30 year mortgage will definitely help them to make this dream a reality. A 30 year mortgage can have some definite advantages but just like every good idea there will come some disadvantages too. Buying your own house is a dream of so many because you have a place to call your own and you are also not throwing money down the drain like you do when you are renting. In this article we will discuss some of the pros and the cons of a mortgage that is 30 years long.
A 30 year mortgage can make buying a house a reality for so many. With such a mortgage, the monthly payments are so much more affordable and because of this it will allow so many families that could only provide to rent a house, to buy a house. It goes without saying that 30 year mortgage rates are much lower than their shorter counterparts. It is really the answer to home ownership for those of us that thought that we would be lifetime renters. And that is great news because you can be proud of owning your own home and have a place to call your own.
Then again, this mortgage, like everything else in life, can certainly have its disadvantages too. 30 years is a long time and most people that will decide to go with it, will be paying it off well into their retirement years. As a matter of fact, retirement may not be an option with 30 year mortgages. You may try to work for as long as possible so that you can get as much of those 30 year mortgage rates paid off; so who knows what age you will decide to retire at? The other option of course is to increase the monthly payments. This can save you a lot of money and although it may not seem doable now in the future it could be more realistic. Most families decide to buy a home when they are younger and at the beginning of their careers so as years pass by and more money is being earned the payment on the mortgage can be increased on your mortgage.
A 30 year mortgage may be the only option for so many families and getting their first house will ensure that they can raise their families in a place that they can call their own. Although it may seem long you can shorten it in the future when you are more financially capable of doing so.