A 15 year fixed rate mortgage has some distinct benefits. It allows you to pay off your mortgage quickly with the security of a payment and rate that remains constant throughout the life of the loan. On top of that, it allows you to pay less interest over the course of the loan, saving you money in the long run. Additionally, interest rates are typically lower on 15 year loans compared to longer term loans.
A 20 year fixed rate loan might be a good choice for you if you are looking for a lower monthly payment along with the security of knowing your payment will not change throughout the course of the loan.
A 30 year fixed rate loan is the best choice for you if you are planning on staying in your home for a long period of time. This loan will offer you the lowest monthly payment, allowing you to possibly look at higher value homes, while also keeping your finances more liquid over the life of the loan.
The option to prepay your mortgage at any time without incurring penalties is especially important to think about with a 30 year loan because you can significantly reduce the amount of interest you pay over the lifetime of the loan while also paying the loan off earlier.
All fixed rate loans allow for the option to pay your loan off early with no prepayment penalties.