Buying a home is a major investment and it doesn’t matter if you’re purchasing your first home or your third. One of the biggest worries people have when purchasing a house is how long the mortgage should be.

There are several options available, but the amount of time on your mortgage can have a big impact on how much interest you pay. If you’re considering buying a home, then you need to know how long is the average mortgage.

We’ll examine various mortgage lengths and how they can impact you financially in the long run. You’ll want to choose the length that is right for you.

How Long Is the Average Mortgage? 30 Years

For many decades, the first home you bought was likely to be the home you lived in for the rest of your life. It’s where you raised your family and where you spent your golden years. The 30-year mortgage has become the standard because of this situation, but times have changed.

People don’t spend the rest of their lives in their home, but mortgage companies still use the 30-year mortgage as the standard. The 30-year mortgage lets you build equity in your home fast so that you can get a home equity line of credit or a home improvement loan later down the line.

Mortgages Longer Than 30 Years

In places like California where the housing prices are high, some lenders provide for 40-year mortgages or longer. This allows people to purchase a high-value home to have a smaller monthly payment, but they’ll pay thousands of dollars of extra interest over the years.

You should think hard before getting a longer-term mortgage because if you want to sell your home after a few years, it can make it difficult to pay off the mortgage with the selling price.

If you find the perfect home and can’t afford it at the 30-year rate, then consider the longer mortgage, but make sure you plan on living there for many years.

Mortgages Less Than 30 Years

There are many reasons why you would want a shorter-term mortgage. You own the home faster and you’re paying less in interest. The biggest downside is either you need a large down payment to keep the monthly payments down or pay higher monthly payments.

These are perfect for people that plan on flipping the house or who don’t plan on living there for several years. You’ll gain equity quickly and it will be easier to pay off the mortgage when you sell it and maybe have some leftover as a profit.

Choose a Mortgage Time That Fits Your Needs

How long is the average mortgage? It’s 30 years, but that doesn’t mean you have to have a 30-year mortgage. There are other options available, but you need to research and decide if they are right for you.

A home is a major investment, so take your time in choosing a home and a mortgage length. If you want to learn more about purchasing a home or mortgages, then please explore our site.