Question 1

What is the difference between a 15-year and 30-year mortgage?

Accepted Answer

A 15-year mortgage has higher monthly payments but significantly lower total interest and usually a lower interest rate. A 30-year mortgage has lower monthly payments but you pay much more in total interest over the life of the loan. For example, on a $400,000 loan, the 30-year option may cost over $200,000 more in interest.

Question 2

How much should I put as a down payment?

Accepted Answer

A 20% down payment is generally recommended as it avoids Private Mortgage Insurance (PMI), which adds 0.5–1% of the loan amount annually. However, many loan programs allow 3–5% down. A larger down payment means lower monthly payments and less total interest paid.

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