What are the pros and cons of a 30 year loan vs a l5 year loan?
A 15 year loan usually has a lower interest rate than a 30 year loan. In addition, over the lifetime of a 15 year loan you would pay substantially less interest than a 30 year loan. However, on a 15 year loan the monthly payments are higher and there is less tax deductible interest. A 30 year loan is the most common mortgage in the United States. There are considerable tax benefits, especially in the early years. The disadvantage of the 30 year loan is slow equity buildup.
