Optimum maturity in mortgage credits

Housing is one of the most basic human needs. Housing needs and demands, shaped by tens of factors, can be met solely by an efficient financial system. Mortgage credit is a financial solution which made up of interest rate, maturity and principal collaterised by real estate mortgage. Having the fact that interest rates are determined in the financial markets, the borrowers have effects only on maturity and principal. In this study, it is implied that, credits have optimum maturity depending on interest rates and borrowers have to intensify on principal, beyond optimum maturity. By means of that, it is even aimed to keep a sustainable demand for credits without exposing at financial exhaustion. Besides; optimum maturity in credits can be calculated at the point where unit change of credit payments is equal to interest rate of that credit.