30 years or 20 years

There's several factors to consider 1) How many years are you into your current mortgage? 2) How long do you intend to hold on to the property? 3) Your stability of income. If your income is stable and you have enough disposable income, then it would make sense.What is the LTV on the property? If your underwater on the value, and you don't plan on staying there long term, you may need to factor that into your decision.

It makes sense to go to a shorter term to pay down the principal faster. I don't know why they are not giving a credit at that rate though. I can give a credit of over $2,000 on a 20 year. As long as your score is 740 or higher? Thanks, Jerry Mlinar

I would add to the previous comments, that statitistically speaking, most homeowners never actually make the additional principal reduction payments, and as a result end up paying a lot more interest over the life of their loan. Additionally, as a rule of thumb 25% of the total interest on a 30-yr fixed mortgage is paid in the 1st five years of the loan. The forced 20-yr payment can solve both problems, however it is also nice to have the flexibility of a lower 30-yr payment "just in case" a cashflow need arises in any given month. Best of luck!

15yr is the new 30. 20 is a nice in between number where the payment isn't too much higher but you get a ton of interest savings.