30-Year and 15-Year Terms

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FLORIDA REAL ESTATE SALES ASSOCIATE COURSE

Types of mortgages

Section 14 of 72

Amortized mortgages are typically offered in fixed terms, with 30-year and 15-year options being the most popular. A 30-year term offers lower monthly payments because the repayment is spread out over a longer period, but the borrower pays significantly more interest over the life of the loan. Conversely, a 15-year term requires much higher monthly payments, but the borrower builds equity faster and saves a substantial amount of money on total interest costs.