Choosing a loan term with the whole horizon in view
Thirty with extra payments
Ledger note
Paying extra on a thirty-year loan can shorten it while keeping a lower required payment for flexibility. A fifteen-year loan forces faster payoff and often comes with better pricing. Compare required payments and total interest both ways.
Last reviewed against the primary sources listed below.
Compare
- Required payment.
- Total interest.
- Flexibility.
Term questions readers send
Is a thirty-year with extra payments as good as a fifteen-year?
It trades lower cost for flexibility.
Do shorter terms have better pricing?
Often, yes.