Experts say there's much more consumers need to consider than they might think of at first. It's never a bad idea to pay off debt faster. Sometimes there are better things that can be done with the money. They can't just look at it in a vacuum. With 30-year loans, borrowers generally get lower monthly payments even though their rates are higher.
People can buy larger houses or keep their payments on smaller homes affordable as a result.
Even though their payments are larger, they build equity faster because more of each payment goes toward principal rather than interest. The lower interest rate and shortened term make the loans cheaper by lowering the overall interest bill. You get a substantial benefit on a 15 from the lower rate. But people who are on a strict budget and are focused much more heavily on the payment are going to gravitate toward the 30. In recent years, however, planners have tried to get consumers to consider their loans in a broader context.