15-Year Versus 30-Year Mortgage: Which Is the Better Option?

Goff, Delbert C.; Cox, Don R.
April 1998
Journal of Financial Planning;Apr98, Vol. 11 Issue 2, p88
Academic Journal
The article compares the 15-year mortgage and the 30-year mortgage funds in the U.S. For the past years, many home buyers opted for a 15-year mortgage rather than a 30-year mortgage, because they believed that the earlier they finished paying their home, the better their financial prospects. However, this option has its pros and cons. One advantage is that 15-year mortgages typically offer a lower interest rate. But the negative aspect of the option is the higher monthly payment. This article demonstrated that investors with access to tax-deferred investment plans may benefit from the 30-year mortgage option.


Related Articles

  • CHAPTER 6: Bring Home the Bacon: Getting a Mortgage. Bray, Ilona; Schroeder, Alayna; Stewart, Marcia // Nolo's Essential Guide to Buying Your First Home;12/1/2012, p125 

    The article presents suggestions on getting mortgage loans. It is advised to consider the annual percentage rate (APR) or mortgage interest rates as it is a good indicator of what a loan really costs. It is recommended to plan to make a hefty down payment and request a loan that is not humongous...

  • HOME BUYERS Mortgage Rate Guide.  // Long Island Business News (7/1993 to 5/2009);5/7/2004, Vol. 51 Issue 20, p11H 

    Presents a mortgage rate guide for home buyers in Long Island, New York.

  • TAKING STOCK: How leaders of the pack started the year.  // Engineer (Online Edition);3/14/2011, p25 

    The article offers information on the performance of the mortgage lending industry in Great Britain. The author believes that the sector started not good due to the steady performance of gross lending in January 2012. Meanwhile, fixed mortgage rates are projected to become popular from March to...

  • Mortgage applications rose. Investor's Business Daily // Investors Business Daily;8/ 7/2014, pA02 

    Mortgage applications rose 1.6% in the week ended Aug. 1, the Mortgage Bankers Assn. says. Demand for loans to buy a home fell 1.3% to a 5-month low. Refinancing activity rose 3.8%, even as the average 30-year interest rate rose 2 basis points.

  • Refi Applications Dip as the 30-Year Fixed Rate Climbs. Berry, Kate // American Banker;1/23/2009, Vol. 174 Issue 15, p13 

    This article discusses the effect that interest rates have on mortgage refinance applications. Mortgage Bankers Association reports that refinancing application numbers dropped when interest rates began to rise. When the interest rates dropped in late 2008, lenders were flooded with refinance...

  • Lending still smashing records. Bone, Alison // Money Marketing;11/27/2003, p18 

    Reports from the Council of Mortgage Lenders (CML) and the Building Societies Association (BSA) that mortgage lending is continuing to hit record levels in October 2003. Remortgaging and house purchasing which have increased; Fall of first time buyers; Fall in fixed-rate lending; Resurgence in...

  • NO-COST REFINANCING. Gibbons, Vera // Real Simple;Dec2011, Vol. 12 Issue 12, p214 

    The article focuses on the advantages and disadvantages of no-cost refinancing, especially in times when mortgage rates are low. It points out that no-cost refinancing does not require to deal with closing costs that may usually range from 1.5-2 percent of the loan balance. However, no-cost...

  • GEMs.  // Practical Accountant;Dec2004, Vol. 37 Issue 12, p23 

    The article presents information on growing equity mortgage (GEM), a fixed-rate mortgage that normally has fixed annual increases in monthly payments used to reduce outstanding principal and shorten the term of the loan. A GEM loan will typically pay off in 15 and 18 years depending on the...

  • THE JUMBO JINX. Birger, Jon // Fortune International (Europe);2/18/2008, Vol. 157 Issue 3, p51 

    The article offers advice on borrowing to buy a house. House prices have fallen by 10% and mortgage interest rates are low for those at $417,000 or less. However, rates for home loans over $417,000 have increased. To downgrade a monthly mortgage payment a hybrid loan can be chosen. Two home...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics