Which mortgage loan is best for you? Here are advantages of two common options. 30 year fixed rate mortgages are traditionally the most popular. They are easier to qualify for and 30 year loans feature lower monthly payments. This allows you to qualify to purchase a higher priced home and leaves more money in your household budget for other expenses.
Now let’s talk about the advantages of 15 year fixed rate loans. 15 year mortgages have lower interest rates, meaning you’ll pay much less interest over the life of the loan. And they give you an opportunity to own your home debt free in half the time. However, monthly payments on 15 year loans are higher – so if you choose a 15 year loan make sure you have the financial ability to handle any unexpected financial crisis you may encounter in the future.
Keep in mind that the actual mortgage life is 5-10 years. Most mortgages don’t go the full term because the homeowner either sells their home or refinances.
Regardless of the mortgage you choose, you should always plan to have you mortgage paid in full by the time you retire.
