Choosing a loan term with the whole horizon in view
Thirty years is a long time. Choose the term on purpose.
Ledger note
A longer term lowers the required monthly payment and raises the total interest paid; a shorter term does the opposite and builds equity faster. Neither is right for everyone. The useful question is which term leaves your budget resilient while meeting the goal you have for the house, such as owning it outright by a certain age.
Last reviewed against the primary sources listed below.
ToolTerm trade-off visualizerYour quotes, three terms, side by side.Entry 130 vs 20 vs 15The trade-off framework.Entry 2Equity by yearWhy early years build little equity.Entry 3When a 30-year fitsAnd when it does not.Entry 440- and 50-year termsWhat longer terms mean.Entry 5Age and loan termWhat the law says.Entry 6Refinancing laterHow term choice affects it.
How to read this journal
Each entry is a short essay with footnotes to primary sources. The visualizer uses only quotes you enter, because terms are priced differently and change daily.