15-Year Mortgage Pros 15-Year Mortgage Cons
Pay Off Mortgage Faster
If you aren’t planning on staying in your home for long, this is a great option so you can focus on other things like saving for retirement.
Higher Monthly Payments
You will likely have higher payments going with this option vs a 30-year loan.
Save Money On Interest
The shorter amount of time you finance, the less interest you will have to pay.
May Forgo Other Opportunities To Save
Paying a higher payment may make it harder to save toward other goals and incentives such as college tuition, a 401K, etc. 
Build Equity Faster
Increase your property equity faster vs. a 30-year mortgage.

 

30-Year Mortgage Pros 30-Year Mortgage Cons
Get More House
Lower payments mean you may be able to buy more house vs a 15-year loan.
Larger Amount Of Interest
If you don’t pay off your mortgage early, you will end up paying a larger amount of interest over the lifespan of your loan.  
Lower Monthly Payment
Lower payments mean you have more opportunity to build up other savings such as 401k, college tuition, and other options.
Higher Interest Rate vs. 15-Year Loan
Since the term of this loan is longer, it’s considered a longer risk for lenders. Because of this, you can expect a higher rate vs a 15-year loan.

Pay More Interest Early On In The Loan
Roughly 30% of interest costs are paid in the first 5 years of a 30-year loan.

Still Can’t Decide?

Call a VIP Loan Officer at 800-680-8799 to help you decipher between loan products and determine what is best for you and your financial needs.