Mortgage Amortization

Your amortization period is the number of years you will need to pay off your mortgage. The length of your amortization period can affect how much interest you pay over the life of your mortgage.

Historically, the standard amortization period has typically been 25 years. However, shorter and longer time frames may be available depending on the amount of your down payment, and certain other factors.

A shorter amortization can save you money as you pay less in interest over the life of your mortgage. Your regular mortgage payment amount would be higher as you are paying off your balance in less time. However, you may build the equity in your home faster and be mortgage-free sooner.

A longer amortization period typically lowers your monthly payments. However, you will pay more in interest over the life of your mortgage and it may take longer to build the equity in your home.

Example

See the the chart below. It shows the impact of two different amortization periods on a mortgage payment and total interest costs. Total interest costs increase significantly if the amortization period increases from 25 to 30 years.

Details	25 Year	30 Year
Mortgage Principal	$150,000.00	$150,000.00
Monthly Mortgage Payment (P & I)(5 yr Term @ 4.00%)	$789.04	$713.28
Interests Costs for Full Amortization	$86,707.04	$106,779.45

Let one of our mortgage specialists help you determine the amortization period that is right for you.

You Have Flexibility

You do not need to stay with the amortization period you selected when you applied for your mortgage. It makes good financial sense to re-evaluate your amortization every time you renew your mortgage.

We also offer a breadth of mortgage features designed to help you pay down your mortgage and build your home equity faster.