Most people get a 30-year fixed rate mortgage, which offers lower monthly payments. But there are some instances when it might make sense to consider a 15-year or 20-year mortgage. Such loans will require you to make higher monthly payments, but they come with lower interest rates, and they let you build up equity in your home much faster.
“A 30-year fixed rate mortgage isn’t always the best for a consumer. Most people are singularly focused on monthly payments. But owning a home is not just putting a roof over your head. It’s part of your overall financial plan,” said Brian Blonder, senior vice president of residential lending at Capital Bank N.A., in Maryland.
Here are five questions to consider when making your decision.