If you are looking to buy your first home, or maybe even looking to spend a little more money upfront to save big over the long term, you might want to consider a 20-year fixed-rate mortgage instead of the traditional 30-year. 

Let’s look at the numbers: A $200,000 mortgage with a 30-year term and an interest rate of 4.75 would have a monthly payment of $1,043 and the total interest over the life of the loan would be $175,600.

The same $200,000 mortgage with a 20-year term at 4.5 percent would have a monthly payment of $1,265 with total interest over the life of the mortgage of $103,670.

Young home buyers planning to have children will have their 20-year mortgage paid off by the time their kids enter college, a big financial advantage.