15 yr vs. 30 yr mortgage

[Kundan Chand]

I am refinancing $400k loan now to take advantage of lower rates on my primary residence. I have 2 options. 15 yr fixed @3.375 % vs. 30 yr. Fixed @3.875%. I am able to afford higher monthly payments for 15 yr fixed but most people I know are cautioning against 15 yr fixed since. It is higher payments. On quick calculation, I save $2k per yr. on average for next 3 yrs with 15 yr fixed. If I go for 30 yr, another option is to pay down extra principal every few months. I plan to stay in this hoise probably less than 5-7 yrs.