Choosing your loan term is one of the bigger decisions in a mortgage. The 30-year and 15-year are the most common, and they serve different priorities.
30-year mortgage
The 30-year spreads payments over a longer time, so the monthly payment is lower and more affordable. The tradeoff is more interest paid over the life of the loan and slower equity growth.
15-year mortgage
The 15-year has a higher monthly payment but a lower interest rate and far less total interest. You build equity quickly and own your home in half the time.
How to choose
- Choose 30-year for the lowest payment and most monthly flexibility
- Choose 15-year to save on interest and pay off the home faster
- Consider a 30-year with extra principal payments for a middle path
We can show both terms side by side so you can weigh the payment against the long-term savings.