15 vs 30 Year Mortgage Payments 

If at all possible, you should consider a 15 year term home loan instead of a 30 year pay back period. You will save hundreds of thousands of dollars in interest. The payments, to the surprise of many, are not that different. 15 year loans are less risky, so you get a lower interest rate. On a $120,000 loan, a 15 year loan at 7 percent would result in a payment of $1,070 dollars or so. The 30 year equivalent would have an interest rate a quarter higher and a monthly payment of roughly $820. Run the numbers for your scenario. You might be surprised.