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By : Leticia Carvalho    99 or more times read
Home purchase is not an inexpensive transaction it involves you investing considerable amount on a long-term property. It is, therefore, just reasonable that you give a lot of thought before you arrive on any decision involved in your home purchase. One very important decision you have to make is about home mortgage. Eventually, this can spell the difference between keeping and losing your home.

Two familiar options on home mortgage financing are the 15-year and 30-year mortgages. Homebuyers are often faced with the dilemma of choosing between the two financing options. Which of the two yields greater dividends? Which is the real buyer-friendly deal? Let us familiarize ourselves with the two choices and find out.

15-year Home Mortgage
One very apparent advantage of 15-year over 30-year is the period of time you will have to spend paying the loan. Under this financing option, your loan would have been paid half the time. That translates to you living your next fifteen years free of debt and worries.

In terms of interest, a 15-year loan carries lower rates than a 30-year. This means considerable savings on the part of the borrower.

30-year Home Mortgage
Opting for a 30-year loan also has its advantages. One of which is the lower monthly payment. Since you are given a longer period of time to pay your debt, you have the choice to invest your cash flow savings. While you are paying your debt, you can work on your investment portfolio over the thirty-year period.

Despite this advantage, some borrowers still prefer the 15-year mortgage. It has intangible benefits that may have more value than cash, stress relief for example.

Like a 15-year loan, a 30-year also has intangible advantages as it is less discouraging in moments when there is no certainty in the cash flow of a household.

Whichever option you choose, the most important thing is that you responsibly handle your home mortgage. This will ensure that you will be able to keep your home for as long as you would want.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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