Which is better, a 15-year or 30-year loan?

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The 15-year mortgage offers you a chance to save a lot of money over the life of the loan. This is because the amortization is half that of the 30-year loan, which means that the total interest paid on the 15-year note, as compared to a 30-year note, is significantly less.

Get a lender to help you calculate the overall savings of the 15-year loan over the 30-year mortgage. In the end, base your decision on your circumstances, such as whether you are nearing retirement age and will have to shell out college expenses for children.