When you’re looking at interest rates on home loans, one thing really stands out: the 15 year loan rate is lower than the 30 year loan rate. Which raises the question, what’s better, a 15 year loan or a 30 year loan for your home?
Before you read any further, let me make this clear – you should speak with your lender or loan officer before you decide to do anything. That’s their job to explain all the technicalities and in-between that this post will gloss over. I currently have a 30 year mortgage loan, but those interest rates on the 15 year ones definitely have me re-thinking…
The general advantages of a 30 year loan:
1. The amount you can qualify to borrow tends to be higher. Meaning a higher price range for you to look in.
2. Your monthly payments are lower than if you had a 15 year mortgage on the same property.
3. Tax benefits are greater (you’re paying more interest)
Sounds nice, right? Who wants a 15 year loan then? Well, the advantages of a 15 year loan are:
1. Lower interest rate
2. You pay back your home loan in half the time.
3. You build equity in your home faster than you would with a 30 year loan.
Ready to talk to a qualified lender? Contact me, I know some great ones!