Is a 30-year mortgage preferable to a 15-year mortgage?

Peter M. Basciano, James M. Grayson, James Walton

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


Better financial results accrue to some borrowers when they select a 30-year mortgage coupled with a simultaneous investment plan rather than a 15-year mortgage term and a subsequent investment plan. These results are particularly applicable in a low mortgage rate environment; however, for the vast majority of borrowers, there remains a significant probability that the 30-year mortgage is the better mortgage product even in higher mortgage rate scenarios. Further, the financial benefit associated with a 30-year mortgage increases as the borrower's marginal tax rate and risk tolerance increase.

Original languageEnglish (US)
Pages (from-to)14-21
Number of pages8
JournalJournal of Financial Counseling and Planning
Issue number1
StatePublished - Jan 1 2006


  • Debt planning
  • Home mortgage
  • Retirement
  • Retirement planning

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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