Should I take a 15-year or 30-year conventional loan?
30-year has a lower payment but more total interest. 15-year cuts total interest dramatically but the monthly payment is materially higher. Most borrowers choose 30-year for cash flow and put extra principal toward the loan voluntarily. The right choice depends on your cash-flow plan and other goals.
Plain-English explanation
Math example on a $400k loan: 30-year at 7% = ~$2,660 P&I/month, total interest ~$558k. 15-year at 6.5% = ~$3,485 P&I/month, total interest ~$227k. The 15-year saves $330k in interest but costs $825 more per month. Whether the savings beat the opportunity cost of that extra payment depends on what else the borrower could do with $825/month (retirement, investments, business). Both are valid choices.
What can change the answer?
Credit score, LTV, points, lender credits, lock timing, and market movement can change the rate quoted. APR includes finance charges.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
More conventional questions on Rates
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review.