What is the Average Length of a Mortgage?
When you are shopping for a home and obtaining a mortgage it is good to know certain facts to determine what mortgage product may be best for you. One of those facts is what is the average length of a mortgage. Most consumers will look at a traditional FHA or Conventional 30-year fixed mortgage because it has the most affordable payment. Normally, you rarely keep that mortgage for that period because you either move or refinance if rates are lower.
On average, a mortgage will last somewhere between 6 – 7 years. This is why you should at least consider other mortgage options such as a 15-year mortgage if you can afford the payment or an adjustable rate mortgage. An adjustable rate mortgage typically in the market we are in offers an initial fixed term of 3, 5, 7 or 10 years. Depending on the market trends these could be attractive options, but it all depends. These mortgages are amortized over 30 years so the payment is calculated similarly to a 30-year fixed mortgage at least for the initial fixed term.
If you are not planning on staying in the home for a long period of time because your job location may change or have a growing family, it may be something to consider. As always, working with a trusted mortgage professional to talk through what your options are is the best course of action. Consider speaking to the Home Loan Advisors at Hall Financial to learn more.