Is it better to get a 15- or 30-year mortgage on a first home? In a reply to that question from a reader, Christine Romans of CNN Money offers some advice for millennials who are weighing their home options.
Assuming your finances are in good shape – you are gainfully employed, have six months of savings in the bank and money for a down payment – then the smartest money move you can make is buying a home now. Interest rates are rock bottom, but will start rising either late this year or next. Home prices are still well below their peaks of 2007.
Typically, for first-time buyers, a 30-year fixed rate mortgage offers the lowest payments and the most stability. Six months before you are ready to buy, check your credit history to give yourself time to fix any mistakes. The higher your credit score, the lower the interest rate you’ll pay.
