There are pros and cons to just about everything in life, and that includes 15-year mortgages. This type of mortgage has become increasingly popular in recent years, as more and more people are looking for ways to save money on their monthly payments.
In this blog post, we will take a look at the pros and cons of a 15-year mortgage so that you can decide if it is the right option for you!
Pros of a 15-Year Mortgage
You’ll Pay Less Interest
The biggest pro of a 15-year mortgage is that you will save a lot of money in interest payments over the life of your loan. In fact, you can save tens of thousands of dollars by choosing this option!
You’ll Build Equity Faster
The shorter loan term also means that you will build equity in your home much faster than with a 30-year mortgage. This can be a huge benefit if you ever need to sell your home or take out a home equity loan.
Cons of a 15-Year Mortgage
Higher Monthly Payments
The main downside of a 15-year mortgage is that your monthly payments will be much higher than with a 30-year mortgage. This is because you are essentially paying off your loan in half the time, so each payment is larger.
Less Flexibility if You Have Financial Issues
If you run into financial difficulties, it can be much harder to make those higher monthly payments on a 15-year mortgage. With a 30-year mortgage, you can usually extend your loan term or even get a forbearance if necessary.
You May Not Be Able To Afford As Big of a Home
The higher monthly payments can also limit how much house you can afford. If you want to buy a more expensive home, you may need to opt for a 30-year mortgage instead.
Is It Worth Going to a 15-Year Mortgage?
Now that you know the pros and cons of a 15-year mortgage, you can decide if this is the right option for you. If you are looking to save money on interest payments and build equity quickly, a 15-year mortgage may be a good choice.
However, if you are worried about making higher monthly payments, you may want to stick with a 30-year mortgage.
Whichever you choose, Gregg Busch, one of the best mortgage lenders in Washington D.C., will make sure you are comfortable with your decision and will make the right choice based on your individual circumstances!