People are relying on mortgage in order to buy their own house. Investing in a house is considered to be the biggest financial commitment one can ever make

1. Can you choose your own term mortgage?

2. (SpringhillCareGroup) 28March 2012 - People are relying on mortgage in
order to buy their own house. Investing in a house is considered to be the
biggest financial commitment one can ever make. Therefore, it will be
beneficial for the consumer if you could choose your own mortgage term.
Before you apply for a mortgage loan make sure that you take help of a loan
mortgage calculator to calculate your monthly payment. This will help you
determine the mortgage loan that you can afford to take out.
When a borrower chooses his own term mortgage then it will be easier for him
to pay off the owed amount without a single default.

3. Quicken loan offers “YOURmortgage” where the consumers will determine the
length of the mortgage where you can choose the term between 8 to 30 years.
Therefore, if you are not keen to apply for a standard 30 or 15-year term then
refinancing your mortgage into an 18-year fixed or a 24-year fixed loan can
be beneficial for you. If your loan term is short then interest rate will be
comparatively lower, thereby you can save considerable amount of money.
If you take out 15 years fixed term mortgage then the interest rate will be lower
than 30 years fixed term mortgage. So you can save considerable amount of
money with a shorter term as less interest will be paid over a shorter amount of
time. In shorter term mortgage you pay less as the loan amortizes faster. But
remember that the monthly mortgage will be higher if your loan term is
shorter. So this is considered to be a drawback of this mortgage program.

4. Reason behind choosing your own mortgage term:
You can choose your own mortgage term in accordance with your budget.
This will help you avoid burning a hole in your pocket while paying back
the owed amount.
You can set your mortgage term according to age you plan to retire.
Therefore, before your retirement you’ll be able to pay back the mortgage
loan and avoid default.
You can choose a mortgage term and then plan your budget accordingly so
that you can pay off the mortgage within a stipulated time.

5. If you are not interested to reset your mortgage then choose to refinance
it by choosing a term that keeps the collective term at the standard 30
years. Therefore, if your present mortgage is for seven years then
refinancing can extend the term to a 23-year fixed.
Therefore, choosing your own term mortgage can help you determine
your own payment schedule. You can make larger payment if you want
to pay off your mortgage loan quickly.