If you can afford higher monthly payments, you can select a mortgage term that is shorter: there are 20-year, 15-year, and even 10-year fixed-rate mortgages available from most mortgage lenders.. For the same mortgage principal amount, you will find that the shorter your repayment period is, the higher your mortgage monthly payments will be, but the total interest you pay over the life of the loan will be less. On the other hand, the longer your repayment period is, the lower your mortgage monthly payments will be, but the total interest you pay over the life of the loan will be more. By extending payment over 30 years, you keep your monthly housing costs low. The most popular mortgage term is 30 years.

Take the time to verify your finances before you go looking, or you may be setting yourself up for disappointment.. The term is the number of years over which you can pay back the amount you borrow. The mortgage amount is the amount of money you borrow from a lender to pay for your house. The length of your mortgage repayment period will directly affect your mortgage monthly payments. In effect, you have possession of the property, but the lender has an ownership interest until the loan has been fully repaid. The mortgage is a legal document that secures the note and gives the lender a legal claim against your house if you default on the note's terms.