Is a 15-Year Loan Really Better than a 30-Year Loan?

Is a 15-Year Loan Really Better than a 30-Year Loan?. 15 yr vs 30 yr Mortgage - Is one better than the other?

Is a 15-Year Loan Really Better than a 30-Year Loan? video duration 19 Minute(s) 44 Second(s), published by Mark Ferguson - InvestFourMore on 17 04 2019 - 18:17:16.

A lot of people assume a 15-year mortgage is better because you save so much money on interest
I am not one of those people
I feel that those who Here's my take one which mortgage is better
What do you think? The 15 year Mortgage? Or the 30 year Mortgage? Watch as I weigh all the pros and cons of .

A lot of people assume a 15-year mortgage is better because you save so much money on interest
I am not one of those people
I feel that those who Check out our new blog https://www.theincrediblepenny.com ℹ️ Get help with your financial life
https://travissickle_youtube1.gr8.com/ See the numbers and understand the difference between a 15 year mortgage and a 30 year mortgage
Learn more at www.WealthOptimized.com.

A lot of people assume a 15-year mortgage is better because you save so much money on interest. I am not one of those people. I feel that those who recommend 15-year mortgages are leaving out the most important numbers like the money you are spending out of pocket on the loans.

A 15-year mortgage has lower interest rates and less interest on the loan. However, you will be paying much more money into the loan to save that interest. Your payments will be much higher, it will be tougher to get new loans, and you will make less money if you can beat the 4 or 5 percent interest rate on the loans with other investments.

I show some examples of how much money it costs on a 15-year loan in this video. On a $200,000 mortgage, you will pay $85,000 more in 15 years on the 15-year mortgage than you will on a 30-year mortgage. That is on just one house! What if you had ten rentals? You would pay $850,000 more over 15 years that could have been used to buy more properties. It takes making payments for 22 years on a 30-year mortgage before you pay as much in as you would on a 15-year mortgage.

You also must consider inflation. After 30 years money will be worth less than half of what it is worth now. Most of the savings on a 15-year mortgage comes from paying money into the loan today. However, you are using money with a lot (today's value) to save money in the future that will be worth much less.

Most people are much better off getting a 30-year mortgage, saving that extra money and investing it instead of paying off loans early.

Because your payments are higher it raises your debt to income ratios which makes it much harder to get new loans. Banks look at month to month expenses, not total debt.

I have much more information here: https://investfourmore.com/15-vs-30-mortgage-rental-property/