15 Year vs 30 Year Terms

When picking a mortgage, some of the easiest choices have the most profound impact. This is certainly the case when it comes to picking between the 15 year and 30 year term. The 15 year term has the advantage of paying off the loan faster, but the payments are higher each month. Conversely, the 30 year term gives you lower monthly payments, but you pay much more in total dollars over the loan. One secret to consider is the fact the interest rate on a 15 year loan is typically lower than on a 30 year note. The reason? The lender is assuming less risk with the shorter time period. So, what should you do? Well, there is no right answer per se. Most people prefer to pay things off quickly if they can.