Should I get a 15-year or 30-year loan?

Some believe the maximum loan term anyone should get is a 15-year mortgage.  I disagree.  However, I do agree that paying off debt is a good thing.  Let me explain.

First, the mortgage should be the last debt you payoff.  This is because it usually has a lower rate than other debt and the interest is tax deductible, this is probably not the case with your other debt.  

Second, working with people and their finances for the last 20 years I've seen people do 15-year loans to only end up back at a mortgage company refinancing to a 30-year mortgage because of a financial hardship (loss of job, health, etc.).  

For most people a better option is to get a 30-year mortgage and make a 15-year payment.  Then, if something happens in your life that requires you to cut back on your monthly cash outgo you can make the 30-year mortgage payment until you are back on your feet.  This is a better plan as you are not incurring the cost to refi back into a 30-year mortgage and you have the flexibility to lower your payment if life happens.