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In the realm of mortgage terms, what is the typical range for the duration of residential mortgages, and what is the common duration for such mortgages, especially in the residential context?

User Prageeth
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Final answer:

In the realm of mortgage terms, the typical range for the duration of residential mortgages is 15 to 30 years. Most people opt for a 30-year mortgage because it allows for lower monthly payments, even though it means paying more interest over time.

Step-by-step explanation:

In the realm of mortgage terms, the typical range for the duration of residential mortgages is 15 to 30 years. These are commonly known as 15-year and 30-year fixed-rate mortgages, respectively. A 15-year mortgage is paid off in 15 years, while a 30-year mortgage is paid off in 30 years.

Most people opt for a 30-year mortgage because it allows for lower monthly payments. However, it's important to consider that a longer mortgage term means paying more interest over time.

For example, if you borrow $200,000 at a fixed interest rate of 4%, your monthly payment for a 15-year mortgage would be approximately $1,479, and your total interest paid over the life of the loan would be around $66,287. On the other hand, with a 30-year mortgage, your monthly payment would be around $954, but your total interest paid over the life of the loan would be significantly higher at about $143,739.

User Teekin
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