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Short answer
A 30-year term usually lowers the required monthly principal-and-interest payment. A 15-year term pays the balance down faster and can reduce total interest, but the required monthly payment is usually higher. Neither term is automatically better for every budget.
Compare these
- The full monthly housing payment, not principal and interest alone.
- Interest paid over the years you realistically expect to keep the loan.
- How much room remains for repairs, savings, and other monthly goals.
Watch for
- Choosing a shorter term that leaves too little monthly flexibility.
- Comparing terms with different points, fees, or rate-lock assumptions.
- Using lifetime interest alone when you may sell or refinance sooner.
A useful next step
Ask for both terms using the same loan amount and pricing assumptions, then stress-test the higher payment against your monthly budget.
Check the source
This guide provides general educational information. It is not a personalized loan recommendation, approval, rate quote, or commitment to lend.
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