15-year Mortgage Loans vs. 30-year Mortgage Loans

15-VEAR MORTGAGE LOANS 30-YEAR MORTGAGE LOANS VS. Experts recommend to limit one's monthly loan payment to 25% of total monthly income. % 15-year loans generally have lower interest rates than 30-year loans. 31 However, the monthly payments for a 15-year loan can be up to 54% higher than a 30-year loan. Individuals who take out a $200,000 loan at 4% interest can save about $77,000 on interest payments over the lifetime of the loan with a 15-year loan. Longer-term mortgages can yield more tax deductions for interest payments. It is even more highly recommended to have an emergency fund in case of job loss when taking out a 15-year loan to not risk missing payments. Those who wish to build their emergency fund or save for investments should typically take out a 30-year loan. People close to retirement often pick a 15-year loan so they can be debt-free when they retire. Castle & Cooke MORTGAGE, LLC NLS m251 http://www.moneycrashers.com/15-vs-30-year-mortgage-comparison/ http://www.getrichslowly.org/blog/2009/09/30/pros-and-cons-30-year-mortgage-vs-15-year-mortgage/ http://www.usatoday.com/story/money/personalfinance/2013/11/07/30-year-15-year-mortgage/3446437/ De