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Taking on a mortgage is an expensive and lengthy commitment. Which mortgage to choose or whether to re-finance are decisions that should come with much deliberation and care. Therefore, it is important to recognize key factors that should be considered in the decision making process.

A recent Chicago Sun-Times article articulated a few helpful hints to consider when facing this decision. These tips are very helpful and informative so I would like to highlight a few.

First, always consider your life’s circumstances when entering into a mortgage or if you already have a mortgage. “Interest rates change, children are born and growing up, sometimes you need to fix up the house and sometimes you need to move on. Life events can trigger changes in the way you pay.” Holder Lewis, Chicago Sun-Times. It is important to make sure that you take these factors into consideration and choose the mortgage, or refinancing plan that best fits these factors.

Second, be careful with Adjustable Rate Mortgages (ARM’s). These ARM’s can provide an option on how much to pay monthly, but it can cause trouble. “The minimum payment doesn’t necessarily cover that month’s interest.” Holder Lewis, Chicago Sun-Times. This in turn can cause your mortgage to increase much more than anticipated. You will end up paying more than you should in the long run.

Third, you should attempt to make at least one extra payment per year. “If you make 13 mortgage payments every year, you will pay off a 30-year, fixed rate mortgage in less than 25 years.” Holder Lewis, Chicago Sun-Times. This is an extremely valuable tip that saves you a lot of money in accruing interest.

Lastly, always be cautious of “good deals”. “If it sounds too good to be true, it probably is.” Steve Habetz, owner of Threshold Mortgage. Most mortgage companies are not trying to help you out at the expense of their profits, so be careful.

Take these tips to heart when you are making decisions about your financial future. They are simple tips that can go a long way to keeping you in a good financial position.