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Ideal for borrowers who need to be evaluated on the basis of nontraditional credit. New American Funding offers FHA and VA loans, works with down payment assistance programs, and seeks borrowers whose credit histories don't fit the mold of traditional banking.
When to consider a 15-year fixed-rate mortgage
The main draws of 15-year fixed-rate loans are their lower interest rates and the fact that they’ll be paid off more quickly. Like any fixed-rate loan, they also offer stability; the monthly payment won’t change no matter what happens to inflation or market interest rates.
But the monthly payment will be much higher than that of a 30-year loan for the same property due to the shorter term, and that will make it harder to qualify for the loan.
When to consider a 30-year fixed-rate mortgage
You can likely claim a sizable tax deduction based on interest payments for your 30-year loan, especially in the early years, when most of your payments go toward interest. And because it’s a fixed-rate loan, you’ll pay the same amount every month.
However, if you don’t plan to stay put for several years, or if you want a lower rate, a 15-year fixed-rate mortgage or an adjustable-rate mortgage might be a better option.
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