Choosing a mortgage is one of the most stressful things about
buying a home. With interest rates on the rise, many wonder
whether a 30-year mortgage is really their best option,
especially when lower rates are available on shorter-term 15-year
In the following video, Dan Caplinger, The Motley Fool's
director of investment planning, looks at when a 30-year mortgage
might make the most sense. Dan notes that 30-year mortgages give
you maximum flexibility, retaining the right to make larger
payments when you can while not
to make big payments when you can't. With
Bank of America
, and other lenders imposing tougher lending guidelines than
before the financial crisis, a 30-year mortgage might maximize
your chances of getting approved. In addition, Dan notes that
having a longer-term mortgages frees up more investment money for
use in IRAs or 401(k) retirement accounts, where you might
returns than you'd get from paying your mortgage back early.
Should you invest in your mortgage lender?
Many investors are terrified about investing in big banking
stocks after the crash, but the sector has one notable
standout. In a sea of mismanaged and dangerous peers, it rises
above as "
The Only Big Bank Built to Last
The Only Big Bank Built to Last." You can uncover the top pick
that Warren Buffett loves in The Motley Fool's
new report. It's free, so
click here to access it now
click here to access it now.
owns warrants on Bank of America and Wells Fargo. The Motley Fool
recommends and owns shares of Bank of America and Wells Fargo.
Try any of our Foolish newsletter services free for 30 days. We
Fools don't all hold the same opinions, but we all believe that
considering a diverse range of insights makes us better
investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights
reserved. The Motley Fool has a