15–year mortgage pros and cons
|15-Year Mortgage Pros
|15-Year Mortgage Cons
|Lower interest rates than 30-year fixed-rate mortgages
|Higher monthly payments
|Lower total cost of interest over the life of the loan
|Less cash left over for investing, emergency funds, and other expenses
Besides, what are some negatives in choosing a 30-year mortgage over a 15 year mortgage?
Disadvantages of a 30-Year Mortgage
- Higher interest rate.
- Loan balance remains higher for longer.
- Spend more in interest over the life of the loan.
- Home equity is slow to build.
- Making monthly payments over a long period of time.
Secondly, how much more would a consumer’s monthly payment be on 15-year financing versus a 30 year loan?
With a 15-year term, you’ll be making half as many payments, so those payments will be higher. With a 30-year-term, you’re spreading the amount over twice as many payments—which means you’re paying more interest over time.