Pros and Cons to the 15-Year Mortgage
Whether you are considering a 15-year mortgage as a first-time loan or as a refinance, there are pros and cons to the setup. Let's first talk about a brand-new mortgage. Let's say you are considering a $300,000 loan and a 30-year mortgage. This loan will be amortized over the 30 years, which means you will start off paying higher interest first and more and more principal as the loan matures. Most lenders will give you a lower rate if you choose a 15-year mortgage over a 30-year mortgage but the benefits may not outweigh the interest rate savings. For instance, let's assume [...]
