Mortgage Loans
Complete 1 form and get up to 5 free quotes:
Mortgage Type:
State:
Local Mortgage Information for Your Area
Mortgage Tools
Search Articles
Related Topics
2 28 adjustable mortgage rate
2nd mortgage
5 year adjustable rate mortgage
80 20 mortgage
adjustable rate mortgage calculator
Comparing 15-Year Mortgages and 30-Year Mortgages
Most often, people that are shopping for home mortgages are primarily interested in interest rates, and specifically with fixed-rate mortgages and adjustable-rate mortgages. This makes perfect sense since the mortgage rate is ultimately what determines monthly payments and how much is ultimately spent on a home loan.

However, the term-or the length of the loan-plays its own critical part, too. The most common mortgage terms are 15-year mortgage loans and 30-year mortgage loans.

Similar to choosing between a fixed rate and an adjustable rate, there is a bit of strategy involved with choosing a longer or shorter term.

Typically, the mortgage with the longer term will have lower rates, and the shorter term will have higher rates.

So, which has the advantage?

To answer this, the borrower needs to consider two concepts:

Let's assume that both terms result in the borrower paying back the same amount of principal and interest over the life of the loan and everything else is equal. In this situation, the 15-year loan will have higher monthly payments, but will build equity more quickly.

The opposite would hold true for the 30-year loan: It will have lower monthly payments, but it will build equity more slowly.

Next: Do you want to learn more about where to get a mortgage or would you like to be matched with up to five mortgage lenders?

 
 
The content provided above (the "Content") is supplied in good faith using references and sources deemed reliable, however it is published strictly on an "as-is" basis. Nextag, Inc., on behalf of itself and its affiliates hereby disclaims any and all express or implied warranties to the maximum extent permitted by law. Despite our good faith efforts we cannot provide any assurance that the Content is accurate or error free, or up to date. We disclaim any obligation to update the Content. The Content is provided for informational purposes only and is not to be construed as financial or legal advice. Everyone's financial circumstances are unique. You are urged to consult multiple informational sources and a professional advisor before making any decisions affecting your personal finances. For more information please consult our website Terms of Use which also apply.