MORTGAGE: Which is better 15 years or 30 years?

When buyers are shopping for a mortgage, they wonder which is a better term, i.e., going with 15 years or 30 years note. The answer depends on the buyer financial situation.

Indeed, a 15 years term will have a lower interest rate but higher monthly principal and interest (P&I). On the contrary, a 30 years term will have a smaller monthly P&I but higher interest rate. Based the income, a buyer may use the interest paid toward mortgage interest deduction (MID) when filing annual taxes. Moving into a new home comes with many expenses like new appliances, new furniture, decoration, house warming, window covering, etc. A 15 years term might be taxing. In such situations, it might be better to go with 30 years term and pay an additional $100 or $200/month towards the principal. The effect of paying $100/month towards the principal reduces the loan term from 30 years to 25 years.

If the financial situation is tight and one needs flexibility, I recommend going with 30 years and trying paying extra $/month toward principal.

If you are in the market to buy your dream home in the DFW area, please call me Poogle (972)4087402 or

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