There are hundreds of varieties of loans available today. The important thing is to choose the homeowner loan that suits your financial situation first and then your long term goals. The property should never dictate the loan terms. Know your limits - the payment you can afford and the duration you are willing to stay in debt - before you begin looking for a home.

Many people step into a long term homeowner loan without much thought. It is the normal way of doing business after all. The last two times I have looked at refinancing our property, no one even offered me a short term loan. All the lenders immediately looked at the rates for a thirty year mortgage.

Getting a thirty year homeowner loan means that I would be in debt until after I was able to retire. On the flip side, if I had taken some time and thought about what we were doing, we would have already paid off our mortgage. We'd be completely debt free and that $600 (or $1000 or whatever your amount is) would now be available for savings, building a barn for the horses our kids want, or just taking a vacation.

Once that picture dawned on me, I felt stupid. Maybe our payments were a little lower by getting a long term homeowner loan. All we did was spend that money somewhere else. To compensate, I'm now making an extra half payment each month. At this rate, we should have the existing debt paid in full before the children graduate high school. There will still be some time for family outings then, won't there? And at least we will have some way to pay for all that college they'll be heading to.

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