With help from one of our salary-based mortgage consultants, you can be one step closer to achieving your financial goals all while staying on track to pay off your mortgage. Whether you have 18, 16, or 13 years left on your loan, your term will stay that way. There's no resetting you back to 20 or 30 years. Instead, choose a term of 10 years or longer depending on your budget.
Not every lender can do that, but American Financing will. It's easier than you think, too.
How a custom term mortgage works
At American Financing, we understand that the home lending process can vary based on each borrower's needs. That's why our process starts with a free mortgage review. This way, we can help you understand customized mortgages and products that fit your budget. So you are educated on options and lengths of loan terms before moving forward.
For example, by choosing a longer-term (20, 25, or 28 years), you're able to spend less each month. However, you will pay more in interest over time. On the other hand, if you were to select a shorter term (10, 12, or 16 years), you can save tens of thousands in interest but should expect a higher payment.
Let's consider the following. Say you purchased a home for $500,000 in 2020, and you want to refinance to shorten your term. We can show you a variety of options that can achieve that goal without forcing you to go over budget. For example, you can consider a 22-year loan that can save you close to $200,000 in interest. Or you can refinance to a 14-year loan and save almost $350,000 in interest.
Use this amortization calculator to estimate the principal and interest payments over the life of your
mortgage. You can view a schedule of yearly or monthly payments and see how much of your payments go toward the
principal and interest.