Which mortgage pays down principal fastest: 13% over 15 years, 14% over 20 years, 10% over 30 years, or 11% over 20 years? The answer is the 15-year loan. Shorter terms build equity sooner with only a modest bump in monthly payment.
Get ready for question of the day. Which type of loan will result in the largest reduction of the principal balance most quickly? A. 13% over 15 years. B. 14% over 20 years. C. 10% over 30 years. D. 11% over 20 years. The answer is letter A. Shorter loan terms pay down principal faster and build equity sooner. A 15-year loan at 13% offers the fastest and largest principal reduction, and payments are often not much higher than a 30-year loan. Still, borrowers should consider other options before deciding. Learned something new? Give us a like, tag a friend, and let's keep the conversation going. Message us here or visit our website.
