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Smart Money
Why your loan term matters more than you think
When you're shopping for a mortgage, it's easy to focus on the interest rate and gloss over the loan term—that 15, 20, or 30-year number. But the length of your loan shapes your entire financial picture. A shorter term means you build equity faster and pay less interest overall, but your monthly payment climbs. A longer term spreads payments out, making them easier to manage month-to-month, but you're committed longer and pay more in total interest. Neither is universally right; it depends on your income, your plans, and what you're comfortable with. I always encourage borrowers to think beyond today's payment and picture where they want to be in five, ten, or twenty years. That clarity makes choosing a term feel like a real choice, not just a default. Let's talk through what term makes sense for your situation.
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