Mortgage terms can be very tricky. Once you start your research, you will realize that you have so many options at hand. You can mix and match a number of options to settle for the best mortgage terms that suit your needs.
When you are faced with the dilemma whether to choose 15 years mortgage or 30 years, you have to be very cautious before making a decision.
Alexander E. M. Hess from USA Today is helping you out with this choice:
30-year mortgage, or 15? 5 questions to help you choose
Alexander E. M. Hess, 24/7 Wall St. 11:58 a.m. EST November 7, 2013
It has been a slow and painful process, but the housing market is now in recovery and foreclosures have been dropping. Since the housing bust, regulators have focused on preventing borrowers from entering into potentially toxic loans. To help accomplish this, the U.S. government established the Consumer Financial Protection Bureau (CFPB) in 2010.
As part of this effort, the CFPB has proposed new disclosure forms to help borrowers understand the real risks and costs associated with their mortgage. But many potential borrowers are still unsure about the type of mortgage that is right for them. Many borrowers may be attracted to 15-year mortgages, which have a shorter term and lower interest rates than 30-year mortgages. But such a mortgage may not be right for their needs.
However, there is another angle to this choice too, which is covered by GRS Staff Writer April Dykman in this story:
Pros and Cons: 30-Year Mortgage vs. 15-Year Mortgage
by April Dykman
Updated on May 2nd, 2016
My husband and I are in the early stages of building a house. As we modify our floor plans, the amount we’ll need to borrow to build is on our minds. It’s probably going to be the most expensive thing we’ll ever purchase, and we need to decide what we want to borrow and what loan term we’ll want.
The main differences between 15- and 30-year loans are straightforward. Fifteen-year loans have higher monthly payments, but you pay less interest, while 30-year terms have lower monthly payments, but you pay significantly more for the house in the long run. As with most areas of personal finance, however, this decision is about more than just the math. There are other important considerations, such as retirement savings, risk tolerance, and discipline.
A comparison and contrast of 15 year mortgage against 30 year mortgage is shown in this video by Education Unlocked:
By now, you should know that is a very tricky choice to make between 15 and 30 year mortgage. So, make a wise choice and reap the benefits later.