How do I choose between a 15 year and 30 year mortgage? Most Americans buying their first home tend to choose a 30-year mortgage. Initially, a 30-year mortgage seems to be the most economical option, but dig a little deeper and you will learn that there are vast differences over the lifetime of the loans.
A 15-year fixed mortgage will cost a bit more each month through the duration of the loan, but compared to a 30-year fixed mortgage can be cost-saving in the long run. Over the life of the 2 loans, a 30-year mortgage will end up costing a homeowner more than double the cost of a 15-year loan.