Long Term Mortgage

[Eugine]

A 30-year mortgage will have a lower monthly payment and a higher interest rate than a 15-year mortgage. You will have a smaller monthly obligation but you will pay more for your house over time because you are paying it off with interest for a longer period. Conversely, a 15-year mortgage will have a higher monthly payment and a lower interest rate, so you will pay less for your house because you are paying it off in a shorter period. "For most home buyers, especially first-time buyers, taking a 15-year (or 20-year) mortgage is out of the question," said Keith Gumbinger, vice president for mortgage tracker HSH Associates. "The higher monthly payments are often too much to handle for these types of buyers."