According to Freddie Mac’s most recent survey, there is currently a spread of 0.72% between the 15- and 30-year fixed rate mortgage benchmarks.
I think most people naturally assume that, when it comes to choosing between a 15- or 30-year fixed rate mortgage, the 15-year loan is usually the better option anyway. Considering the current spread, I’m sure a lot of folks out there think they’d be absolutely crazy to take out a 30-year loan.
All things being equal, a 15-year mortgage allows you to pay off your mortgage twice as fast while saving a significant chunk of money on interest. However,I say the 30-year mortgage is a more logical choice because it offers so many more advantages over its shorter-termed cousin.
Here are several big reasons why I think a 30-year fixed rate mortgage is the more pragmatic choice: