15-Year vs. 30-Year VA Mortgage | Rates & Guidelines 2021

Abstract

The classic 30-year mortgage is the most popular - and most affordable - mortgage in America. 30-year loans come with lower monthly payments The benefits and drawbacks of any home loan depend on the borrower's financial situation, but in general, the main advantage of the 30-year mortgage is lower monthly payments. Most homeowners don't want to be "House rich and cash poor." Choosing "The best" mortgage: 15 vs 30 year Who's best suited for a shorter-term mortgage? In my experience, it's someone who's made regular payments on a 30-year mortgage for a while - e.g., for 10 years or so - and wants to refinance to lower the interest rate from 5% to 3.5%. A shorter-term mortgage may also be good for people who are retiring soon and want to pay off their debts beforehand. What are you trying to accomplish? Do you plan to live in the house for decades, or is it merely a "Starter house?" Is the house an investment that you plan to flip or rent? Is it likely that you'll want to refinance? Usually, when people plan to live in a house with their families, they want a 30-year mortgage. Create your own 15-year mortgage If possible, get a 30-year mortgage, but make extra payments or pay more than the minimum every month. Some lenders offer shorter and longer-term mortgages in addition to 30- and 15-year mortgages. Who knows? You might find that a 20-year mortgage - or a 10-year mortgage - is better suited to your lifestyle and personal finance strategy.