A 20-year loan could be paid off in about 15 years and you could build home equity quicker by saving thousands of dollars in interest. Some favor taking the longest mortgage term available to reduce the monthly payment. You can then take the extra money and invest it while still capturing the tax benefits of the mortgage. If you are a conservative person who is just going to leave your money in the bank, you may be better off paying down that mortgage. If, on the other hand, you are a person who is willing to take the risk of the stock market, you may be better off taking as large a mortgage as possible and paying it back as slowly as possible.
Many people do better with a disciplined payment schedule.
It will be your decision as to whether you can really use the money elsewhere or not. Most people tend to go with the highest loan amount and the highest possible price they can afford. Consider this very carefully, but in the end, if you want to save literally thousands of dollars over the course of the loan, as well as pay it off earlier, the Bi-Weekly Mortgage is a great way to do it. Get your FREE Email for business or personal use Compare mortgage products and services from local and regional mortgage companies. Here MEET Local and Regional mortgage Professionals.