What are the pros and cons of a 15-year mortgage vs. a 30-year one? Let's compare them.

15-year pros:

  • Ends more quickly.
  • You'll build equity sooner.
  • You'll pay less in interest over the life of the loan.

15-year cons:

  • Larger monthly payments.
  • You can't afford to buy as expensive a house, since the payments are larger.

30-year pros:

  • Flexibility: you can pay more when you have more and pay it off in fewer than 30 years.
  • Smaller monthly payments.
  • Since the payments are smaller, you can afford to buy more house.

30-year cons:

  • You'll pay more in interest over the life of the loan (often twice as much as with a 15-year mortgage).
  • Takes longer to pay off.

Of course, there are many other considerations you need to mull over before making mortgage decisions -- whether you want a fixed-rate or adjustable-rate mortgage is just one, for example.

You'll find more home-buying guidance and tips in our Buying a Home Center. In addition, drop by our Buying or Selling a Home discussion board.