What are the advantages of getting a 15 year mortgage over a 30 year mortgage other than getting it paid off earlier?
Answers | 2
Rates are lower on 15 year, and it forces you to payoff. HOWEVER the higher payment will make it harder to qualify and harder to get any other loan after you make this choice
For the 15 year option, you will pay significantly less interest (actual dollars) over the life of the loan. For example, on a 500k mortgage loan, the 15 year interest rate may be 4.0%, while the 30 year is 4.5% (as Caroline noted above). With the 15 year loan, you will pay almost 67k LESS for the same home. So, with the 15 year loan, not only will you pay your home off faster, but you will save significant amounts of interest.