When buying a home, most people will choose 30-year loans.
But from my experience, 15 and 20-year loans (Fixed) are much better deals in the long run.
1st of all, if you maintain the original 30-year loan note, by the time you finish paying it off, you end up paying back the bank three times the actual loan amount.
The shorter the terms, the less you pay for the same house.
Sure, a payment amount is almost always cheaper for 30-year loans, but for just a few more hundred dollars a month, you will cut off tens and fifteen years of payments.
Even if you decide to keep 30-year loans, paying an extra $100.00 a month towards the principal will shorten the time before you own your home.
We paid off one house using a 15-year fixed mortgage method.
We turned around and sold the house for $100,000.00 plus a profit.
