Question:

What is the average payment period for a mortgage?

Answer:

As a recent survey found out, the average payment period for a mortgage loan has dropped to some five or so years. That is, most people are keen on refinancing (as it is called in the U.S.); in the UK they call it remortgaging. People are increasingly becoming more aware of how mortgage loans work and are keen on getting better rates and terms and cutting down average prepayment period, using accelerated mortgage payment plans.

Reducing the average mortgage payment period saves years and a lot of mortgage interest cost (IC).

The Two Major Ways to Cut Mortgage Life and Costs

In the past borrowers waited a lot before they decided on a refinance. However, nowadays no one is willing to wait more than necessary to get better rates, after running the break even calculations. Everybody is now refinancing or using an accelerated payment plan to save up and/or pay off mortgage early.

You are certainly advised to use an accelerated mortgage plan to cut your interest costs and your average home loan repayment period unless you have a better investment idea.

Also, refinancing to better rates and terms when it is possible is a very good possibility. Borrowers should be following current mortgage rates and take advantage of the recent historically low home loan rates.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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