30 year vs 15 year home mortgage?

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asked May 30, 2017 in Other-Finance by Trw (160 points)
Which is better? A 15 year mortgage or a 30 year mortgage?

1 Answer

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answered Jun 1, 2017 by Minty (132,850 points)
With a 30 year Mortgage you can get lower payments but will pay higher interest to the bank over the 30 year period.

30 year mortgage is what most people get when buying a house.

But if you can afford the higher payments get a 15 year Mortgage. You can always refinance to a 15 year mortgage if you can afford the higher payments in the future.

30 years is a long time if a 40 year old took out a 30 year loan then the house would be paid for when they turned 70.

So a 15 year loan is recommend. The sooner you pay off the mortgage the better.

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