If I can afford the extra payment, should I get a 15 year term or stick with a 30 year fixed rate loan?

It can be an ordeal trying to determine what the right mortgage is for any borrower.  Must borrowers do not pay attention to the factors that influence their home loan costs.  With a 15-year mortgage you’ll pay much less in interest but have to make much larger monthly payments.  A 30-year loan provides a lower and possibly more manageable monthly payment, but by increasing the repayment time period, the total interest over the life of loan rises radically.  The term comparison mortgage calculators can be used to ascertain the monthly payment changes between the two products as well as produce an amortization schedule to see how the balance of the loan will change over time.  A standard 30 fixed rate loan and 15 year fixed rate loan are simple interest loans that do not penalize the borrower for prepayment.  It is possible to accept a 30 year mortgage and use the mortgage calculator to determine different payments you can make to retire the loan as if it were a 15 year mortgage and any term you wish.  30 year mortgages will have a slightly higher rate than the shorter term loans.  Make sure the mortgage interest rate used in the mortgage calculator is accurate.

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