"I am obsessed with 15-year mortgages," he says. "The 15-year loan … gets you building equity right away, whereas with a 30-year loan, you build no meaningful equity for a long, long time."
Clark says another advantage of getting a 15-year mortgage is that lenders consider you to be a much less risky borrower compared to those who take out a 30-year mortgage.
A 15-year mortgage “means that you instantly are very secure in that property versus somebody who puts down little or no down payment,” Clark adds. “If something happens in their lives and they need to bolt from that property, they may be upside down: owing more on it than what they’ll get from it after real estate commissions. So I am a big advocate for large down payments, and I would go for it.”
For more information on purchasing property, read these easy steps on how to buy a home.
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