Who can afford a 15 year loan in California?

Who can afford a 15 year loan in California?

There is no debate, you save significantly more money when you finance your home over 15 years, as opposed to the more common 30 year loan.  I am a graduate of Dave Ramsey's Financial Peace University, and have heard him say many times to pay off your mortgage as soon as possible, get a conventional loan, etc., etc.  The reality is, that in Southern California, particularly the Los Angeles area, the median home price is approximately $337,000.  In the  Long Beach area, the average home price is slightly higher at about $365,000.  With a 15 year loan, with a purchase price of $365,000 the monthly payment (with 5% down; and a 2.75% interest rate) is approximately $2,850 per month!  Who can afford a 15 year loan in California?

I listened to the Dave Ramsey show recently, and the reality is that most of my clients, who are first time buyers are being financed with  an FHA lender, and some are taking loans against their 401K accounts for the down payment and closing costs.  Buying a home is a great investment, and most buyers assume a 30 year note.  Who can afford a 15 year loan in California?  Bankrate.com has a 15 year mortgage or 30 year mortgage calculator that is fairly informative if you are interested in seeing the difference in a mortgage payment.