The mortgage term is an important factor to take into consideration when selecting your mortgage program. The longer the term, the lower your monthly payments - but having the lowest possible payments is not on every person's mind. Many people prefer to make larger payments on their mortgage because it is paid faster and because they are investing in an appreciating asset. In addition, if you have plans to rent your property or a unit within your property, you will earn more money if you pay your mortgage faster. If you can afford them, larger payments are better for a home loan. If you cannot afford higher payments all the time, you can get the same results with a 30 year fixed mortgage by making an additional payment once or twice throughout the year.