As home prices begin to skyrocket, more people are tempted to secure an interest-only loan or a variety of other options to make home ownership seem affordable.

But don't be fooled by loans with variable rates or 40-year and 50-year Minnesota real estate mortgage loans. The longer it takes you to pay off the loan, the more money you will pay in interest.

The 15 year real estate mortgage test

Most financial experts say the best way to save money in the long run is to secure a 15-year fixed mortgage instead of a traditional 30-year loan. The best way to determine if you can afford your Minnesota real estate mortgage is to configure the cost of the house over 15 years. If the payment would not fit into your budget right now; then, you are over your head. If you can afford the mortgage, then obtain a 30-year fixed rate mortgage and try to pay it off in 15 years instead of 30. That way you give yourself a little financial wiggle room if times are tight or you have to spend extra money on emergencies or holidays.

Real estate mortgage trends

In the past few years more lenders have begun offering 40-year mortgages. In fact, 40-year real estate mortgages account for 5 percent of all home loans. The downside to a 40 or 50-year real estate mortgage is the fact that you will be building up equity at a snail pace. Also, the rates on 50-year mortgages are adjustable, not fixed, which means you are at the mercy of the real estate market. If the prices of homes in a certain part of Minnesota are more than you can afford, consider other areas.

Think fixed with Minnesota real estate mortgages

Experts suggest you only obtain an adjustable rate real estate mortgage if you are planning to stay in a home for less than five years. If you are living in a condo or townhouse and are in your twenties, it may be prudent to buy an adjustable rate mortgage. But for all other people, life is too unpredictable and you statistics are on your side if you choose a fixed-rate mortgage for the long-term. Most millionaires are people who have lived in the same house for most of their lives. They own their homes free and clear. By obtaining a 30-year Minnesota real estate mortgage, and paying it off early, you truly own your dream home sooner than you ever imagined. That will give you a level of comfort that you can beat.