Ten year mortgages are very positive thing you every aspect of your life and also the future of your children because you won’t pay fortune in interest. The faster you pay off your mortgage the more you save and the more money you can put into your Childs college fund. There is mortgages that range from between 10 years all the way up to fifty years. The golden rule with mortgages is the faster you pay them off the more you will save and the better off you will be because the longer you have to come up with consistent some of money the more time and opportunity you have to run into disaster. If you get laid off in the middle of your mortgage at the ten year mark then you just wasted ten years paying bills that won’t have a solid meaning to them at the end of the tunnel. You could have already paid $120,000 that you will never see again.
Ten year mortgages are harder during that time period but the amount you save is amazing. If you buy a 100,000 house and you pay it off over ten years the difference is 10 years at a low interest of 7&= is 70,000 that you will pay on top of your house. You will almost double your house payment but do you want to know what happens when you pay it off at the 20 year mark. You will pay more that your house. You will pay 100,000 for your house then you will pay $140,000 in interest only!. You will pay your house over again to interest and that is amazing. You need to pay it off with a 10 year mortgage and not with a twenty and gods forbid a 30 year mortgage.
You will spend more every month with a 10 year month mortgage but you will save so much in the long run. You will save 70,000 on the difference between a 10 to 20 year mortgages. Think of it like this. 10 year mortgage =$1700, 000 for a house of 100,000 at a 7& rate which is low. With a twenty year mortgage you will pay $340,000 for a 100,000 house and then you will pay an extra $140,000 to interest. I hope that you choose the harder ten years and not the Expensive 20 because the end result is far more likely to be good with the ten year mortgage versus the 20 or even higher.
Remember that you can put what money you don’t spend on the 20 year mortgage on the kids’ college bill which will help them get started in life on a more successful page. I hope that for your kids and family you choose the cheaper option on you and your family and good luck. If in the case of something going wrong then you spent less money on the 10 year mortgage which is always better when you deal with a very difficult time in life.