Mortgage for 15 years vs. 30 years

Differences between 15 and 30 year mortgages can be important for homeowners and potential home buyers. You need to consider the benefits when choosing the mortgage options that best suit your needs. Although fixed rate mortgages are structured in the same way, adjusting a loan to 15 or 30 years is the difference. The mortgage repayment period can affect the interest rate and the amount of the payment.

A 15-year fixed-rate mortgage often comes with a lower interest rate and a lower total amount of interest paid on maturity. However, a 30-year fixed-rate mortgage has a lower monthly payment and gives homeowners more flexibility in their monthly budget. Choice between 15 years vs. A 30-year fixed-rate mortgage deserves a deeper look at the details.

Let’s compare 15-year-olds 30-year mortgage terms to help you decide which is best for your financial goals:


Mortgage maturity for 15 years

  • Faster mortgage repayment period – A 15-year mortgage structures your mortgage payments within a 15-year time frame. Faster maturity also means higher monthly payments to repay the mortgage balance.
  • Lower interest rates – A 15-year mortgage will often have the option of a lower interest rate than a 30-year mortgage. This means that you pay a lower interest rate on your mortgage every year. Shortening the loan period also means that you will pay less total interest for the duration of the loan.

Mortgage maturity for 30 years

  • Lower mortgage payments – The primary advantage of a 30-year mortgage is greater flexibility in your monthly budget with lower mortgage payments. With monthly payments structured over a 30-year maturity, your mortgage payments are lower than those on a 15-year mortgage.

Use our mortgage repayment calculators and compare what your 15-year mortgage repayment might look like. 30-year mortgage maturity.

Mortgage repayment calculator

Why do homeowners choose a 15-year mortgage?

For some homeowners, it is important to repay the mortgage debt as soon as possible. A 15-year mortgage halves the traditional mortgage term. You pay much less on interest for the duration of the loan, and you often get a lower interest rate on a 15-year mortgage. Basically, a 15-year fixed rate mortgage is probably the cheapest money you can borrow on a residential property.

A 15-year fixed rate is a popular choice for homeowners who refinance their original mortgage on their home. Refinancing at a better interest rate and deadline is a great way to save money on your mortgage.

Home buyers who want to buy their second (3rd or 4th) house are another group that often opts for a fixed rate mortgage for 15 years. With the equity gained from the sale of their previous house, they are able to repay a healthy down payment and can afford monthly payments on a 15-year mortgage.

Why do homeowners choose a 30-year mortgage?

Many homeowners choose a 30-year mortgage to keep their budget flexible. In fact, fixed-rate mortgages for 30 years are the most popular mortgage term among American homeowners.
Having a lower monthly mortgage payment means having more space in the budget for other things. Home renovations, family expenses, education costs or other investments can be good reasons to choose a 30-year mortgage.

US mortgages are not subject to any prepayment penalties. This means that a lower 30-year mortgage payment gives you more flexibility in your monthly budget than a 15-year repayment structure. If you would like to repay the loan earlier, you do not pay any penalties for paying more to the principal balance each month.

For home buyers for the first time and some homeowners who want to refinance, a 30-year mortgage period is a more affordable monthly payment. After several years of owning a home and repaying your mortgage on time, refinancing for a 15-year fixed rate mortgage is one of the great ways to save money on your mortgage.

5 Ways To Mortgage Refinancing Can Save You Money

Our goal is to help you get the best mortgage options available to you. With some of the lowest interest rates and fees in Texas, we are proud to take care of homeowners in our state when it comes to their mortgages.

Whether you are looking for a 15- or 30-year mortgage, we are here to help. Talk to one of our licensed mortgage experts about your home ownership goals today.

David Berry

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