04/7/10
If you’re buying a home or refinancing, you may ask yourself if you should get a 15-year or 30-year mortgage loan. Benefits to each exist and deciding on which one you should get depends on your personal finances.
The Benefits of a 15-Year Mortgage Loan
- You save big on interest! Paying interest on a 15-year mortgage loan term is much less than paying it on 30 years, even if the mortgage rates are low.
- If you’re planning on your current home to be your retirement one – a 15-year mortgage loan means you’ll pay it off faster and be mortgage free, which can be a great relief.
- Your mortgage rate on a 15-year mortgage loan may be less than on a 30-year one.
The Benefits of a 30-Year Mortgage Loan
- You’ll pay less in monthly mortgage payments.
- You won’t pay as much interest if you end up selling the home since it’s spread out over 30 years rather than 15.
- A 30-year mortgage loan may be easier to get since the monthly payments are less.
If you’re still battling whether to get a 15 or 30-year mortgage loan, try the LendingTree Refinance Calculator. You can find out how much you will save with each term and what your monthly mortgage payments will be.
