Most mortgage terms today are 15 or 30 years. If you choose a 15-year term, your payments will be higher but you may be able to get a lower interest rate. However, you will also pay down your loan more quickly and build equity at a faster rate. 30-year mortgages generally have higher interest rates than 15-year terms, but because of the extended repayment period, the monthly payments are lower. While it takes longer to pay down the loan and longer to build equity, this is the option many first-time home buyers opt for. If this is your second (or third or fourth) home, or you're older than 40 or so, you may consider a 15 year, so that your loan will be paid off before you retire.
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