Is a 15-Year or 30-Year Mortgage Better?
Owning a home is a goal for many people. It is the American Dream and can be a great asset in building wealth and becoming financially secure. A majority of home buyers need to take out a mortgage to purchase a home. There are many choices and terms for financing when it comes to buying a home. One of the choices is deciding on what time period to have a mortgage payment. The period of time chosen for a home loan is often either a 15-year or 30-year mortgage. Both of these have their benefits. A large majority of financial sites you will read are proponents of a 15-year mortgage. This can be advantageous, but I am a big supporter of a 30-year year mortgage payment. There are a number of reasons it is many times a better choice in the world we live in today. Why is a 30-Year Mortgage Better? Realistic To me purchasing a home is a much better choice compared to renting. There are arguments for this with the costs of home ownership. From air conditioners to roofs needing to be replaced every so many years, there is a cost. I would almost even go as far as saying depending on the home, area, and money put into it during a period of time may result in not coming out very far ahead. It is even possible that a home’s value can depreciate. Even with the costs involved in a home, there will typically be some money that can be taken away at the time of selling it in most cases. With renting there is no financial benefit when you leave. Read the full article
