We've all heard Dave say to *never* get a 30-year mortgage, but **do you know why?**

For starters, you're basically throwing your money away. Some people get a 30-year mortgage, thinking they'll pay it off in 15 years. Good intentions aside, this rarely happens. Why? Because **life happens** instead. You might decide to keep that extra payment and take a vacation. Or maybe it's time to upgrade your kitchen. What about a new wardrobe? Whatever it is, **you'll find an excuse to spend that money somewhere else.**

## Want More Proof?

Let's check out the difference between the two options. A **30-year** mortgage on a $225,000 home with 6% interest has a payment of **$1,349**. On that same house with the same interest, the payment on a **15-year** mortgage would be **$1,899**. That's a $550 difference!

That may not seem like much, but take a look at the bigger picture. When you pay $1,349 a month for 30 years at 6% interest, you are actually paying $486,000 for your $225,000 home.

Now how do those numbers work for a 15-year mortgage? A monthly payment of $1,899 for 15 years at that same interest rate will equal $342,000. So if you go with the 15-year mortgage, **you'll save yourself $144,000 over the life of the loan!**

## Still Not Convinced?

You're still in that $225,000 home 10 years later. The 15-year mortgage has been paid down to about $98,000. However, the balance on a 30-year mortgage is only down to $188,000. What does this mean exactly?

It means that if you have a 30-year mortgage, you've paid almost $162,000, but you've only knocked $36,000 off the loan. So over the past 10 years, you've given the bank **$130,000**! Wouldn't it be worth it to pay a little extra every month so you could avoid that?

If you think you're getting a better deal with a 30-year mortgage simply because you save a few hundred bucks each month, then **you're only thinking short term**. Go over the math again. If you open your eyes, you'll see that you're literally **throwing away thousands of dollars**. Don't fall into the same trap as everyone else—refuse to go with a 30-year mortgage.

Trust us—you'll be happy you paid the extra money each month to save yourself from years of debt.