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Should I Get a 15 or 30 Year Mortgage?

Jul 19, 2019

If you have started the process of getting a mortgage, you may be wondering if you should get a 15 year or 30 year fixed mortgage. 

Each length of mortgage has its advantages and disadvantages. The decision between both mortgages will be based on your current financial situation. 

Here is what you need to know, including the pros and cons between a 15 year and 30 year fixed mortgage.

Think About Your Current Financial Situation

Before making any decision, you may want to consider your financial situation before applying for a mortgage. Here are a few questions you should consider:

If you aren’t too sure, you can use our mortgage calculator to help you get an idea of what you can afford.

30 Year Mortgage

If you are considering a 30 year mortgage, there are some advantages, such as lower monthly payments, which can help you pay off your other debts, such as student loans and credit cards.

That is one of the main reasons many buyers choose this over a 15 year mortgage. This is because you will be paying back the loan over a long period of time. 

If monthly cash flow is your biggest concern, the 30-year fixed-rate loan might be the best choice. Because this loan type comes with the lowest monthly payment, it will also leave you with more money in your budget each month. It is a good way to get into a nice house with an affordable monthly payment. 

Here are the pros and cons:

Pros:

Cons:

15 Year Mortgage

One major benefit of a 15-year term mortgage is that you will be spending a lot less interest while paying off your mortgage at a faster rate. 

If you can afford the payment that comes with a shorter term loan such as a 15 year mortgage, the 30-year mortgage might not be for you.

15 year fixed-rates have mortgage rates that are as much as 1% lower than a 30 year fixed rate loan. You can save thousands of dollars on interest with this loan option. 

Here are the pros and cons:

Pros:

Cons :

The best way to determine which loan you should go for is to meet with a mortgage lender. A lender can help you review your finances, your housing goals and calculate which loan type makes the most sense for you.

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