A 15-year mortgage is better than a 30-year mortgage simply because you would pay the loan off faster, and the interest rates would be lower. The 30-year plan will cause you to pay double or more of what you borrowed. Homebuyers typically choose this option because it is more affordable for them at the time.
30-Year Mortgage:
The Pros:
- Lower monthly payments
- Flexibility to make extra payments
- Invest in savings/ savings for financial goals
The Cons:
- Higher interest rates/ interest costs
- Builds equity slower
15-Year Mortgage:
The Pros:
- Builds equity faster
- Lower interest rates
- Long term savings
The Cons:
- Higher monthly payments
- Limits financial goals
Being able to afford your monthly payments rather than to agree to pay and struggle to do so is better as well. So, what is the better option? The decision is yours, but you can get help if needed. You could consult with a professional mortgage advisor, and they would be able to determine the best option for you. If you would rather avoid any extra fees or are still indecisive go with the choice that works best with your finances and long-term goals. Both can be the better option depending on your circumstances.