Choosing a 15-year mortgage over a longer-term loan can result in paying less interest. For example, borrowing $100,000 at a 4% interest rate will accumulate more interest over a longer period. A 15-year mortgage reduces the total interest paid, especially since these shorter-term loans often come with lower interest rates, leading to significant savings.

However, your monthly payments will likely be higher with a 15-year mortgage. Even with a lower interest rate, the payments are higher because a larger portion goes toward the principal from the start. Nonetheless, this approach can lead to becoming mortgage-free in just 15 years, a substantial benefit for homeowners in Petaluma.

Opting for a longer-term mortgage, such as a 30-year loan, generally results in paying more interest over the life of the loan. This is how banks and other lenders generate profit: they lend you money and earn interest over the extended repayment period.

One advantage of a 30-year mortgage is that your monthly payments are likely to be lower, as the total repayment is spread over a longer duration. This can be beneficial for borrowers who need to manage a tight monthly budget.

• Monthly mortgage payments are calculated based on the interest rate, principal loan amount, and amortized interest over a 30-year period. With a Fixed Rate Mortgage, your interest rate remains constant, regardless of fluctuations in market rates, ensuring that your monthly payment stays the same throughout the loan’s duration.

• The exact payment amount will depend on your specific circumstances and the prevailing interest rates at the time of your application. Additionally, you have the flexibility to pay off your mortgage at any time without incurring pre-payment penalties.