Business & Finance mortgage

Should I Have a 15-Year Mortgage?

    Lower Interest Rate

    • According to Bankrate.com, 15-year mortgages have lower interest rates than 30-year mortgages, which will save you money over the life of the loan. In addition, you will build equity in your home faster than with a mortgage that has a longer term.

    Higher Monthly Payments

    • Your monthly payments with a 15-year mortgage will be much higher than with a mortgage of a longer term, which will limit the size of the mortgage you can afford.

    Bottom Line

    • The higher monthly payments can limit the size of the home you can buy with a 15-year mortgage. However, if you can afford the monthly payments, you can save money by paying off the mortgage in a shorter time.

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