- What are the main indicators that affect the maturity of a mortgage?
- What are the other criteria to take into account to calculate the maturity of your mortgage?
- How to optimize the maturity of your mortgage?
The term of your mortgage is the end date of your repayment. Your mortgage can last from 5 to 35 years in general.
What are the main indicators that affect the maturity of a mortgage?
Your age: The younger you are when you sign your loan, the longer you can borrow. If you want to subscribe to a mortgage when you are in the middle or end of career, the ideal is to count on a short term, thanks to a personal contribution to finance your project.
Your repayment capacity: a high repayment capacity allows you to repay large monthly payments, and benefit from a reduced repayment period. Your monthly payments should not exceed 33% of your income.
What are the other criteria to take into account to calculate the maturity of your mortgage?
The interest rate: The longer your mortgage is, the more interest you pay. For example, a 35-year loan costs you more in the long run than a 20-year loan.
Financial securityIf you opt for a loan over a long period, the risk of accidents in life are higher than for a loan of ten years. This could affect the amount of your insurance and guarantees.
Your future projectsIf you want to resell your home after a few years to use the amount of the transaction as a contribution to a larger loan, avoid taking out a 30-year loan. In fact, you repay mainly interest in the first 10 years for a loan of this duration.
How to optimize the maturity of your mortgage?
You constitute a contribution therefore allows you to borrow on shorter duration. You can save to perform one or more early repayments and choose to bring the maturity of your mortgage closer. If mortgage rates have fallen significantly since signing your contract, you can try a credit redemption so that the maturity of the loan is shorter.