Home Buyers’ Choice of Mortgages Gauged

Home buyers, apparently choosing higher monthly payments and lower interest paid over a longer term, prefer a 15-year fixed-rate mortgage as their first mortgage option, according to a recent study.

The consumer study, by Better Homes and Gardens Real Estate Service, showed that 40.3 percent of respondents preferred the 15-year fixed rate mortgage, compared with 39.3 percent who would choose a 30-year fixed-rate loan. Eleven percent would prefer adjustable rate loans and 5 percent would opt for a 30-year fixed-rate bimonthly mortgage.