The Pros and Cons of 15-Year vs. 30-Year Mortgages

30-Year Mortgage

The Long Game

✅ Pros:

• Lower Monthly Payments Your payment will be significantly lower, which means more breathing room in your monthly budget.

• Greater Flexibility You can pay extra when you want, but you're not obligated to do so. That’s helpful if your income varies or you like having a safety net.

• Easier to Qualify For Lower payments often mean you can qualify for a more expensive home (but don’t let that tempt you too much).

  
  

❌ Cons:

• More Interest Over Time You’ll pay a lot more in interest over 30 years, even if the rate is only slightly higher.

• Slower Equity Buildup It’ll take longer to build up real ownership in your home, since a smaller portion of your early payments goes toward the principal.

15-Year Mortgage

The Fast Track

✅ Pros:

• Pay Off Your Home Sooner Say goodbye to mortgage payments in half the time—hello, early retirement or second home.

• Lower Interest Rates Lenders typically offer lower rates for 15-year loans. That means less interest paid overall.

• Build Equity Faster More of your payment goes toward the principal early on, giving you real ownership faster.

  
  

❌ Cons:

• Higher Monthly Payments Significantly higher payments can strain your monthly cash flow—especially if you’re not prepared.

• Less Flexibility Once you’re locked in, those higher payments are mandatory. No “skip a month and catch up later” vibes here.

• Smaller Budget for Other Goals Putting so much toward your mortgage could limit how much you can save, invest, or spend elsewhere.

Want to talk it through? Call me!