货币英语 02 15-Year Versus 30-Year Mortgages

By Elizabeth Carlassare. 

Today’s Topic: Is a 15- or 30-year Mortgage Better?

Last week’s episode was about paying versus¹ not paying points when you get a mortgage, and Episode 16 was about how to decide on a fixed² versus an adjustable³ mortgage. This episode is about another important decision you face when selecting a mortgage: how to decide which loan term is best for you.

A generation ago, the decision was easier because there were fewer choices. Most everyone went with a 30-year fixed loan. Today, there is a wider variety of mortgage loan types and terms. You can choose a 15-, 30-, or 40-year term (and some lenders offer 20- and 50-year mortgages too).

So how to decide?
The Benefits of a Long-Term Loan
A longer-term loan, such as a 30- or 40-year loan, gives you the most flexibility⁴. The longer the loan term, the lower your monthly payment, since you’re stretching out repayment⁵ over a longer period of time. And since the monthly payment is lower, loans with a longer term are easier to qualify for than loans with a shorter term.

When you get a loan, one of the documents the lender is required to give you is a "Truth in Lending" statement. It’s best to take a seat before looking at it because it shows you the scariest number you’ll see on your loan documents: the total amount of the payments you would make over the life of the loan if you were to keep the loan for the entire term. The shear⁶ size of the number can be quite a shock! When I got my first home loan, I was stunned⁷ to see that this number was twice as much as the loan amount!

This big number is the reason some people opt⁸ for a 15-year mortgage. They want to reduce the amount of interest they’ll pay over the life of a loan. But here’s an important tip: You can get a 30- or 40-year loan instead and pay it down more quickly if and when you want to by making extra payments on the principal. You can choose to pay it off over 15 years or 20 years or whatever other term suits your plans best. This puts you in the driver’s seat and gives your more control and flexibility.
Use Long-Term Loans to Free Up Your Money
Even if you can afford to make the higher monthly payments of a 15-year loan, going with a 30- or 40-year loan instead will free up more of your money for other purposes, such as funding retirement⁹ accounts or other investments. You may be able to invest the money you save (by having a lower payment) in a safe investment at a higher rate of return than the interest rate on the loan. And remember: mortgage interest is tax deductible.

A 15-year fixed loan can be tempting¹⁰ because it typically has a lower rate than a 30-year fixed loan, but it can be risky¹¹ to have a higher monthly payment and less control over where your money goes each month. And if you lose your job or go through a period of financial difficulty, it will be less stressful if your mortgage payment is lower and more manageable.
With a longer term loan, you’ll have more flexibility and lower monthly payments. You can still pay down your loan more quickly if you want to, but you don’t have to. The choice is yours.
Administrative¹²

Today, I’m giving away a copy of 106 Mortgage Secrets All Homebuyers Must Learn But Lenders Don’t Tell by Gary Eldred, a book with great tips on selecting the right mortgage. This week’s winner is Ed W. Congratulations, Ed!  I’m giving away a second bonus copy of the book. And the winner of the bonus book is Matthew A. Congratulations! Check your e-mail for instructions.

Cha-ching! That's all for now, courtesy of Money Girl, your guide to a richer life.

If you have a question or comment, e-mail it to。。。。。。Also, please take a moment to take the Money Girl audience survey posted in the Money Girl section of quickanddirtytips.com. Money Girl is part of the Quick and Dirty Tips network. Check out the other helpful Quick and Dirty Tips podcasts like Modern Manners Guy, Legal Lad, and The Mighty¹³ Mommy. Thanks for listening!

 

1 versus   

prep.以…为对手，对；与…相比之下

参考例句：

• The big match tonight is England versus Spain.今晚的大赛是英格兰对西班牙。
• The most exciting game was Harvard versus Yale.最富紧张刺激的球赛是哈佛队对耶鲁队。

2 fixed   

adj.固定的，不变的，准备好的；(计算机)固定的

参考例句：

• Have you two fixed on a date for the wedding yet?你们俩选定婚期了吗？
• Once the aim is fixed,we should not change it arbitrarily.目标一旦确定，我们就不应该随意改变。

3 adjustable   

adj.可调整的，可校准的

参考例句：

• More expensive cameras have adjustable focusing.比较贵的照相机有可调焦距。
• The chair has the virtue of being adjustable.这种椅子具有可调节的优点。

4 flexibility   

n.柔韧性，弹性，（光的）折射性，灵活性

参考例句：

• Her great strength lies in her flexibility.她的优势在于她灵活变通。
• The flexibility of a man's muscles will lessen as he becomes old.人老了肌肉的柔韧性将降低。

5 repayment   

n.偿还，偿还款；报酬

参考例句：

• I am entitled to a repayment for the damaged goods.我有权利索取货物损坏赔偿金。
• The tax authorities have been harrying her for repayment.税务局一直在催她补交税款。

6 shear   

n.修剪，剪下的东西，羊的一岁；vt.剪掉，割，剥夺；vi.修剪，切割，剥夺，穿越

参考例句：

• Every spring they shear off the sheep's wool and sell it.每年春天他们都要剪下羊毛去卖。
• In the Hebrides they shear their sheep later than anywhere else.在赫伯里兹，剪羊毛的时间比其他任何地方都要晚。

7 stunned   

adj. 震惊的，惊讶的 动词stun的过去式和过去分词

参考例句：

• The fall stunned me for a moment. 那一下摔得我昏迷了片刻。
• The leaders of the Kopper Company were then stunned speechless. 科伯公司的领导们当时被惊得目瞪口呆。

8 opt   

vi.选择，决定做某事

参考例句：

• They opt for more holiday instead of more pay.他们选择了延长假期而不是增加工资。
• Will individual schools be given the right to opt out of the local school authority?各个学校可能有权选择退出地方教育局吗？

9 retirement   

n.退休，退职

参考例句：

• She wanted to enjoy her retirement without being beset by financial worries.她想享受退休生活而不必为金钱担忧。
• I have to put everything away for my retirement.我必须把一切都积蓄起来以便退休后用。

10 tempting   

a.诱人的, 吸引人的

参考例句：

• It is tempting to idealize the past. 人都爱把过去的日子说得那么美好。
• It was a tempting offer. 这是个诱人的提议。

11 risky   

adj.有风险的，冒险的

参考例句：

• It may be risky but we will chance it anyhow.这可能有危险，但我们无论如何要冒一冒险。
• He is well aware how risky this investment is.他心里对这项投资的风险十分清楚。

12 administrative   

adj.行政的，管理的

参考例句：

• The administrative burden must be lifted from local government.必须解除地方政府的行政负担。
• He regarded all these administrative details as beneath his notice.他认为行政管理上的这些琐事都不值一顾。

13 mighty   

adj.强有力的；巨大的

参考例句：

• A mighty force was about to break loose.一股巨大的力量即将迸发而出。
• The mighty iceberg came into view.巨大的冰山出现在眼前。