Home mortgage means a method to finance buying a dwelling. When you want to buy a home you have to obtain (if not buying all cash) a loan and that is known as mortgage. The institution which lends you the money for the mortgage is called the lender.

When you buy a dwelling the per month repayments you have to make to the lender or a bank is called the monthly mortgage payment. The interest rate that is attached to the mortgage is known as the mortgage interest rate. The time it requires for somebody to pay back a mortgage is called the term.

There are two popular mortgage loan terms in the US, 15 year and 30 year. You have the option to decide which payback term to apply for. The term is the number of years the lender will give you to pay back the loan. At the end of the term you own the home.

The 30 year term loans are usually easier to qualify for and the monthly payments are comparatively lower. You can pay a little extra each month with a 30 year mortgage duration if you so decide. You save a modest amount more in interest that  can make it much easier for you to finish paying off earlier than the 30 year term.

The good thing about a 15 year loan term is that it saves you 15 years of interest in the long run and the mortgage is paid off in half the period. The draw back of a 15 year mortgage term is that the monthly payments are larger. There is less flexibility in 15 year loan than there is with a 30 year term. But if you are capable and can afford then take the 15 year term. You save a bundle on the interest and have your home paid off in half the time.