130000 mortgage 15 years: smart steps before you sign

Snapshot of payments and costs

A 15-year term trades lower total interest for a higher monthly bill. On a $130,000 balance, a mid-range rate could land you near about a thousand dollars per month, before taxes, insurance, and HOA. Factor in closing costs, potential points, and an escrow cushion so the real cash flow picture is clear.

Common mistakes to avoid

• Chasing the lowest rate while ignoring APR and fees.
• Underestimating maintenance and property taxes; payment shock is real.
• Skipping a rate lock in a volatile week.
• Accepting a loan with a prepayment penalty when you plan extra principal.
• Not checking the break-even on buying points versus keeping cash.
• Stretching your budget so far that you lose emergency savings.

How to approach the decision

Gather three to five quotes, ask for a written loan estimate, and compare line by line. If cash flow is tight, consider biweekly or occasional extra principal instead of maxing your payment. Verify no PMI surprises, read the escrow section, and get a clear payoff schedule so your plan feels realistic and resilient.