Financial advisor Suze Orman suggests considering a shorter-term mortgage, like a 15-year or 20-year fixed-rate loan, if you can manage the higher monthly payments. This advice aims to help people realize that opting for a shorter repayment period might be more affordable than they initially think.
At its core, this quote highlights the financial benefits of choosing a shorter-term mortgage over a traditional 30-year plan. A shorter term often results in lower overall interest costs and quicker home equity buildup, even though monthly payments are higher. By encouraging homeowners to assess their budget for these potentially larger payments, Orman empowers them to explore more financially advantageous options that might not seem immediately accessible.
Suze Orman is a renowned financial advisor known for her straightforward advice on managing money wisely. Her insights frequently address common challenges faced by individuals in various stages of life, from young adults just starting out to seasoned professionals looking to secure their retirement.
