15-Year Versus 30-Year Mortgages

Today's Topic: Is a 15- or 30-year Mortgage Better.

Elizabeth Carlassare
3-minute read
Episode #19

Use Long-Term Loans to Free Up Your Money

Even if you can afford to make the higher monthly payments of a 15-year loan, going with a 30- or 40-year loan instead will free up more of your money for other purposes, such as funding retirement accounts or other investments. You may be able to invest the money you save (by having a lower payment) in a safe investment at a higher rate of return than the interest rate on the loan. And remember: mortgage interest is tax deductible.

A 15-year fixed loan can be tempting because it typically has a lower rate than a 30-year fixed loan, but it can be risky to have a higher monthly payment and less control over where your money goes each month. And if you lose your job or go through a period of financial difficulty, it will be less stressful if your mortgage payment is lower and more manageable.

With a longer term loan, you’ll have more flexibility and lower monthly payments. You can still pay down your loan more quickly if you want to, but you don’t have to. The choice is yours.


Today, I’m giving away a copy of 106 Mortgage Secrets All Homebuyers Must Learn But Lenders Don’t Tell by Gary Eldred, a book with great tips on selecting the right mortgage. This week’s winner is Ed W. Congratulations, Ed!  I’m giving away a second bonus copy of the book. And the winner of the bonus book is Matthew A. Congratulations! Check your e-mail for instructions.

Cha-ching! That's all for now, courtesy of Money Girl, your guide to a richer life.

If you have a question or comment, e-mail it to money@quickanddirtytips.com. Also, please take a moment to take the Money Girl audience survey posted in the Money Girl section of quickanddirtytips.com. Money Girl is part of the Quick and Dirty Tips network. Check out the other helpful Quick and Dirty Tips podcasts like Modern Manners Guy, Legal Lad, and The Mighty Mommy. Thanks for listening!

Image courtesy of Shutterstock


About the Author

Elizabeth Carlassare
The Quick and Dirty Tips Privacy Notice has been updated to explain how we use cookies, which you accept by continuing to use this website. To exercise your choices about cookies, please see Cookies and Online Tracking.