Should You Choose a 15-Year or 30-Year Mortgage?

The biggest difference between a 30-year mortgage and a
15-year mortgage is cash flow. The 15-year mortgage offers more
of it, and here’s what you can do with it.  





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What’s the difference between a 30-year and a 15-year
mortgage?



Between the two of them, the biggest difference is cash flow.
With a 15-year mortgage, you’d obviously be paying the mortgage
off in half the time. Additionally, the bank would give you a
lower interest rate because they’d get their money back in half
the time.



For those who can afford it, a 15-year mortgage is a better
option.



What does this mean for you as a homeowner? Why should you
consider the 15-year mortgage over the 30-year mortgage? Aside
from cash flow, there are three other benefits a 15-year
mortgage offers:



Once you end your 15-year mortgage, that gives you more cash to
invest in other options like retirement accounts


You can spend that extra cash flow to increase your current
home or lifestyle.


It gives you extra cash flow to bid higher for a nicer home
down the road.


In summation, by compressing your loan period from 30 years to
15 years, you’re ending the loan more quickly, you’ll have a
much more favorable interest rate, and it puts you in a better
position to have cash for other options down the road.

If you have any questions about this topic, please feel
free to give me a call. I’d be happy to speak with you!