The traditional 30-year fixed mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then stable-rate loans are usually cheaper. 

The 30-year mortgage has consistently been the favorite among homeowners for its low monthly payment. Though more of your money goes to interest, and you pay for twice the length of time compared to a 15-year term, the advantages of a lower monthly payment can’t be ignored.  

A 30-year mortgage could allow you to afford more physical property than a 15-year mortgage. If you need a bigger mortgage to buy a larger home, taking 30 years to pay it off would give you the freedom to make this purchase. It might not be possible if you only had 15 years to pay off the loan.  

One of the significant decisions you’ll make when applying for a mortgage is whether to choose a 15-year or 30-year loan. In short, you should look at your entire financial picture and determine how much money you can afford to pay each month and how long it will take to repay your home. The longer you take to pay off your home, the more interest payments you’ll have to make.

Best Mortgage has a free tool you can use to calculate your estimated monthly mortgage payment, including taxes and insurance. Enter the home price, your down payment, and details about the home loan to calculate your payment breakdown, schedule, and more!