Mortgage Hack #17

How it works: A 15-year mortgage is beneficial to those that want to build equity in their home quickly and pay off their loan faster. The rate on a 15-year mortgage is typically lower than a 30-year mortgage. Because the payments are higher on the 15-year mortgage, buyers will be able to get rid of private mortgage insurance (PMI) sooner by reaching the 20% equity threshold more quickly.

15-year versus 30-year Loan