Talk With A Home Loan Expert
Get help navigating the mortgage options offered by AAA to find the right one for you.
A mortgage is likely the largest—and longest—loan you’ll take out in your life. But just how long should it be? There is much to consider in the 15- vs. 30-year mortgage debate. Explore what each option has to offer and decide which is the right choice for you.
Looking to refinance your home loan? Here are four times when it’s a smart choice.
Read More15 year: Since you are borrowing money for less time, you’ll pay a lot less interest over the life of the loan. Plus, you typically will get a lower interest rate.
30 year: Spread out over a longer time, these loans have lower monthly payments—which could help you qualify for a higher-priced home.
15 year: You’ll have higher monthly payments than with a 30-year loan for the same amount. Payments too high? You may have to settle for less house or a longer loan.
30 year: After a few years, you’ll have less equity built up than if you’d been making the higher payments of a 15-year loan. You’ll also end up paying more interest over time.
Find out how your down payment affects your monthly payment.
Learn More15 year: As you get closer to retirement, a 15-year mortgage that you can pay off before you stop working may be a smart choice.
30 year: You can pay your loan off sooner by paying extra each month—and you can go back to the lower payment when you need to.