Commonly, the standard term is considered to be 25 years. However you may choose a different term if it suits you and the lender agrees that you can afford it. You have to keep in mind that with a shorter term, you will have higher monthly payments but pay less in total. While with a longer term, you will pay less each month but more in total.

Above all beware of making financial commitments that continue past your retirement age unless you are sure you will be able to afford the payments. You should think twice, or even more, before taking out a 40-year loan to buy a house. With the skyrocketing price of properties many middle class family are attracted by this kind of mortgage deals. But the extra 10 or 20 years won't reduce the monthly payments all that much. And you will pay so much interest to the bank. Eventually your equity will grow so slowly, that your home will never be a good investment, helping you to save and build wealth.

There are many personal and emotional reasons instigating one’s family to buy or build a house. But financial considerations also play a big part in the decision, too. A home should become your foundation for building wealth. As you are progressively paying back your mortgage, your home should quickly become one of the most valuable things you own. Besides the equity you create by paying off the loan is a type of savings that you can use to send your kids to college or ensure a comfortable retirement. But if you have a 40- and 50-year loans. You don't build wealth because you have to give really too much of what should be your money to the bank.