Having a home for our family is a dreaming every of us. For someone who have unlimited fund, buying on cash is good choice. But, it is not impossible for us to have a home for family though we have limited cash. The way to do it is home loans. This schema maybe the most popular way of financing a home buying. With this schema we can have a home by paying monthly for certain period of time.
Generally, this loan has two kind of mortgage rate to calculate how much installment must be paid by the borrower, that are fixed rate mortgage or a variable rate mortgage. By fixed rate mortgage, the borrower will have the same interest rate and monthly repayment for the whole mortgage period. Another choice is variable rate that gives borrower chances to pay lower rate whenever loan rate is down but must pay more when loan rate is up. Usually, this combination of fixed rate and variable rate are using today.
Before choosing what kind of home loans and how long time its period. It needs certain calculation on how much the value of loan, how long time its whole period and loan rate and combined with our salary every month. There are many online home loan calculator that help borrower calculate that.
By having a home the owner will feel secure emotionally. Besides that having a home can be used for reverse mortgage that allow the owner borrowing some money against his or her home equity and does not need to pay monthly. Calculation will be done when for example, the homeowner dies or move from that house.
So, having a home gives many advantages for us and there are many ways to get it.
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We have already known that buying a home is one of the biggest and most important investments after for education investment. Because of that, it is crucial to choose the right mortgage and its length of time, so that we will be able to pay off within a reasonable time as we planned.
The are some things we must consider in choosing the length time of mortgage , that are financial circumstances, what kind of future benefits we want to get and how much we can afford to pay monthly on a mortgage while still maintaining a healthy amount of savings. It is a must we still able to save a reasonable amount of money each month to protect us in the event of an emergency, besides for the education of our kids and our retirement. 
Usually most mortgages have a period of 15, 20 or 30 years. While the interest rates for 15 and 30 years mortgages usually are fixed because there are moany people choose them more often than mortgages which last 20 years.
Choosing one of them have consequences. The shorter the period we choose the more money we spend and on the contrary. It also means that choosing a 30 year mortgage will give us chance to have saving more money.
weighing the benefits and loss of existing options is a must. Choosing long term loans will give us more disposable income to spend on another needy. Usually long term mortgage loans are flexible and so that allow us to save money. Just to remind that we can pay more money on the mortgage than we usually pay before if we have available funds so that the total amount loans can be reduced. The kinds of loans are also the easiest to be approved for.
On the other side, long term mortgages loans also have higher interest rates than the shorter. It happens because we will pay more money in the long terms. Choosing a long period also takes a long time to build up equity in the home. Long term period also need long term commitment, that is why we must have stable employment.
While long term loans need long time, short term mortgages can be paid off much faster. They have much lower interest rates and that equity can be built up quickly. At the same time, our purchasing power will be low and we will not have many tax benefits. Short term mortgage loans are also hard to get approved for. These loans tend to have higher monthly payments.
Do not worry if we have chosen on of them because whether we decide to get a short term loan or a long term one, we still able to refinance to change the length of the mortgage. If we have decided a few years after setting up a 30 year mortgage that we earn enough to pay it off much faster, we can refinance the mortgage for a shorter time and on the contrary.
So, the most important thing is to think it deeply which option suits us best. We should consider current income, how stable it is, and how much money we will have left over after paying the mortgage monthly. Beside that it is wise choosing a home which evenly matches our level of income before buying it.
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