I had rather go the 30 year route versus the 15 year route. I'll pay it off in about the same time frame or quicker, but can liquidate some money if I get in a bind.
I agree, and we are certainly the minority on this board when it comes to this kind of thinking. I would take the longer mortgage and the .25% higher rate and invest the difference in a solid investment paying a much higher return than the interest on the mortgage. This will put you money ahead in the 15 years you would have paid it off even if you started investing the whole amount in 15 years. It also leaves you the option to double up and pay it off in 15 years anyway, if that is your main goal. It won't put you in a jam and run the risk of losing all of your equity in case of a financial hardship in the future. Growing your long term wealth is all about arbitraging your resources. You are still better off with the 30yr mortgage with lower payments even if your only goal is to be debt free and you aren't worried about your overall long term financial picture, because as stated above you can still pay it off in 15 years without putting yourself in as much jeopardy if something happens with your income in the future.
I would recommend you read the book "The Bankers Code" if you want to understand more about these concepts.
