When you borrow money for a home in Jamaica, you’ll choose a mortgage term, which is how many years it will take to repay the loan and interest.
Long vs. Short Term
Longer Term: Smaller monthly payments but more interest.
Shorter Term: Larger payments but less interest overall.
Your choice depends on your budget and how long you’re comfortable paying the loan.
Common Terms in Jamaica
Most people choose a 25-year mortgage, but 20 or 30 years are also common. Lenders can help you decide, and a mortgage calculator shows how different terms affect payments.
Repayment Options
Capital Repayment: Pay both principal and interest monthly.
Interest-Only: Pay only interest, with full loan due at the end.
Payment Examples
For a JMD 22,500,000 loan with a 10% deposit (JMD 2,250,000) and 5% interest:
TermMonthly PaymentTotal CostTotal Interest10 yearsJMD 230,000JMD 27,600,000JMD 5,100,00015 yearsJMD 185,000JMD 33,200,000JMD 10,700,00020 yearsJMD 160,000JMD 38,400,000JMD 15,900,00025 yearsJMD 140,000JMD 42,000,…
