<prompt> Human: Hi there, I am almost 40, with 96k annual salary, no debt, wife 6k 2 kids. We are likely going to buy the exact Virginia home we are renting now, for 270k. I have about 110k on my savings account. I am thinking about going with something like 70k downpayment, and mortgage for 200k. The question I have is straightforward one. Should I take a little higher rate and pick 30 years fixed, or a lower rate and 15 years? The answer would be obviously 15, since one would save considerable interest amount over time, but, but, here is my logic, if I take 200k for 30 years, my necessary payment is going to be fairly low, and I can but do not have to pay little extra 300, 400 600 more every month, or whenever there is some windfall profit, like bonus, consulting income etc,...but on rainy day, if the economy tanks and corporation fires me, Ill be obliged to pay lot less, thus sustain myself for 6 or 12 months on my savings alone, allowing me to be more picky, when looking for new job or similar...so,..? TLDR: If I go with 30 year mortgage and I can but do not have to pay little extra every month with virtually no penalty, to end up with practically same outcome as with 15 year mortgage, but more security, or is there a catch?  <response>: Thats actually a good way to play with interest rates, I would go with the 30years but make sure you can make extra payments 