<prompt> Human: My logic is that a 30 year mortgage requires lower minimum payments and therefore if you were to lose your job, have unexpected medical bills due to health issues, or need money for other reasons you would have some breathing room.  <response>: Interest rates are higher on a 30-year. However, the slightly higher interest rate is known as an option cost - its the price you pay for having the ability, should you wish, to pay less each month than a 15-year note. 