What is the duration of a typical mortgage term?

A typical mortgage term is commonly 15 to 30 years, with the 30-year fixed mortgage being one of the most popular options among homebuyers. This longer duration allows borrowers to spread out their repayment over a more extended period, resulting in lower monthly payments compared to shorter-term loans. While a 15-year term can save borrowers on interest and build equity faster, the longer 30-year term is favored for its affordability on a monthly basis, making homeownership accessible to a broader range of consumers.

The other duration choices, while they can exist in specific lending scenarios, are not as widely recognized or used in the market for standard mortgages. A 10 to 15-year mortgage might appeal to those looking to pay off their loan quickly but doesn't represent the majority of typical loans. Similarly, 20 to 25-year terms offer a middle ground but lack the prevalence of the 30-year option. Lastly, 30 to 40-year terms are less common and may involve higher costs in interest. Thus, the 15 to 30 years option encompasses the most prevalent terms seen in residential mortgage lending.