Should I Choose a 15 year or 30 year Mortgage?

When you meet with a loan representative to secure financing after you've made a home purchase one of the questions you'll be asked is if you would like a 15 year term or a 30 year term. Time to make that decision.

At this point you need to consider your options. A 15 year term will likely give you a higher payment over a shorter time period, but a 30 year term will give you a lower payment with a longer time to pay it off.

Several things to consider are your job stability and your financial situation. Would you like to put more money into savings or a retirement or education account each month? The lower payment with a 30 year loan plus the tax deductions may make this a better choice.

If your job is stable and you don't see any changes in your future, this might be a good option and you will be paying less interest overall.

One other option if you want the lower payment but would still like to pay off your mortgage early, is to make biweekly payments rather than monthly payments. This alone will shave years off of your mortgage.

The bottom line, which is best for your budget and peace of mind?