15 Jun
15Jun
Do you want lower monthly payments now or do you want to pay off your home faster?

That’s one of the primary questions to answer when deciding between a 30-year fixed mortgage or a 15-year fixed mortgage.
15-Year MortgageYou have 15 years to pay off the full amount borrowed. Monthly payments are higher, but the interest rate is lower, the cost of the loan is less in the long run and your mortgage is paid off sooner.



30-Year MortgageMonthly payments are lower because they’re spread out over 30 years. Lower monthly payments can make it easier to afford the home you want, or give you more money to spend on other expenses or even use the extra cash to invest. However, you end up paying more interest over the life of the loan.


Comparing BothHere’s the difference between mortgage payments and costs using a hypothetical example of a $300,000 mortgage with a 5% interest rate (the actual rate would likely be lower for a 15- year):
TermMonthly PaymentTotal Interest PaidTotal Cost of Mortgage
15-year fixed$2,372.38$127,028.56$427,028.56
30-year fixed$1,610.46$279,767.35$579,767.35
Whether you choose shorter or longer, the good news is that you have options.
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