What Are Some Benefits of a 30 Year Mortgage?

Borrowers who take out 30-year mortgages have lower payments than borrowers who take out 15-year mortgages for a house of the same price. The longer-term mortgages also benefit borrowers by allowing them to purchase more expensive homes and still stay within their budgets, explains Bankrate.

First-time home buyers especially benefit from 30-year mortgages because the lower payments help them transition from renting to home owning, notes USA Today. While the monthly payments for a 30-year mortgage are lower, borrowers who take 30 years to repay their loans incur significantly higher interest charges than borrowers who take out 15-year mortgages, according to Bankrate.