|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.