Why we like 30 year mortgages over shorter terms!

The American Dream of owning a home …

It comes with a Liability in most cases …

With lots of term options, we wanted to discuss our favorite, and why!

The 30 Year Mortgage – Our Favoritedebt-1500774__480

When most purchase a home, especially the first home, a Mortgage is the norm. In most cases the 30 year mortgage will be the most costly from a rate only standpoint –

Here is why it is our favorite:

  1. You can easily make a 30 year mortgage a shorter term by paying it faster/extra.
  2. You cannot pay less on a scheduled shorter term loan if life’s curve ball comes around.
  3. While likely the higher rate, the monthly cost will be the lowest due to the extended term.

There are always exceptions to the situation, but for the above reasons, our starting place is usually the 30 year mortgage!

Have a Great “Understanding Mortgages” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.


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