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Is a 15-year or 30-year mortgage better?

Short answerA 15-year mortgage builds equity far faster and charges much less total interest, but the monthly payment is significantly higher. A 30-year mortgage keeps payments lower and preserves cash flow, which many buyers prefer even though they pay more interest over time. Choose based on your monthly budget and how long you plan to keep the home, not on the rate alone.
Reviewed by Juan Fernando Romero, NMLS 2557318Updated

The details

You can mimic a shorter term by making extra principal payments on a 30-year loan, which keeps the lower required payment as a safety net.

Lenders qualify you on the actual payment, so a 15-year term reduces how much home you can qualify for.

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