You may consider a loan with a 15-year mortgage rate over a longer term loan like a 30-year fixed if you’re comfortable with making higher monthly payments. You’ll pay significantly less interest over time and pay your home off twice as fast, since you’re borrowing the money for just 15 years as opposed to 30.

For example, on a 30-year, fixed-rate mortgage for a home valued at $300,000 with a 20% down payment and an interest rate of 3.75%, the monthly payments would be about $1,111 (not including taxes and insurance). But for a 15-year fixed-rate mortgage with an interest rate of 3.00%, the payment would be about $1,657.

Additionally, you'll typically build equity at a much faster pace with a 15-year mortgage than with a longer term loan. However, because the monthly payment on a 15-year mortgage can be much higher than a 30-year loan, you may not qualify for as much mortgage as you’d hoped. You can estimate the purchase price of a house you may be able to afford using our home affordability calculator.