• Leave a Review

Joe Gonzalez Team

CrossCountry Mortgage

  • About
  • Resources
    • Calculator
    • Refinancing
    • First Time Buyer Tips
    • First Time Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Programs
    • Loan Process
    • Mortgage FAQ
    • Mortgage Glossary
  • Apply
  • Free Rate Quote
  • Send Secure Documents
  • Blog
  • Contact

3 Positive Reasons To Get A 15-Year Mortgage

November 6, 2019 by Joe Gonzalez

3 Positive Reasons To Get A 15-Year MortgageMost people can’t pay for a home outright, so they finance it with a mortgage loan. 30-year mortgages are more conventional, but they also come with a significant interest price tag.

People who have a stable career and the income to afford larger payments, or who are nearing retirement, may want to take out a 15-year mortgage. Here are some reasons to consider one.

Save Money Over The Life Of The Loan

The total interest paid on a 30-year loan can be nearly as much as the principal. While it can be difficult to see the bigger picture when facing a mortgage payment that will be a good bit higher, consider this: Paying off a loan in 15 years versus 30 years will save tens of thousands of dollars in interest, and in some cases, as much as $100,000.

Interest rates on 15-year mortgages are also typically lower than other longer-term home loans, which provides additional mortgage interest savings.

Build Equity Faster

Equity refers to how much of your home you’ve already paid for plus what it appreciates in additional value over time. If your home is worth $250,000 and you owe $190,000 on your loan, you have $60,000 in equity.

Since more money is going toward the loan principal rather than interest on a 15-year loan, you build equity faster, which is beneficial for numerous reasons. It lowers your loan-to-value ratio and may improve your chances of getting a home equity loan, which can be used for large expenses.

Become Mortgage-Free Sooner

Instead of having a housing payment later in life, that money is freed up for retirement or other expenses. 

If retirement is on the horizon for you in the next 10-20 years, ditching your mortgage payment sooner rather than later is wise. Once you are on a limited income, you will want as few expenses as possible. Plus, having the option of a home equity loan for emergencies is attractive.

There are several excellent reasons to get a 15-year mortgage. Run the numbers with your trusted home mortgage advisor and decide what makes the most sense for you.

Joe Gonzalez

Filed Under: Mortgage Tagged With: Equity, Mortgage, Savings

Joe Gonzalez Headshot

Contact Joe


Senior Loan Officer
Call Phone (610) 355-8039
NMLS #126036

Connect with Me

How can I help?

  • This field is for validation purposes and should be left unchanged.

Browse articles by category

Archives

Quick Links

  • Accessibility Statement
  • Privacy Policy
  • Blog
  • Contact Us

Our Location


625 West Ridge Pike Building C Suite 100
Conshohocken, PA 19428
Joe Gonzalez Team - Cross Country Mortgage, Inc. NMLS 3029 | NMLS 1854092 | NMLS 126036

Return to top of page

Copyright © 2023 Joe Gonzalez Team. All rights reserved.   Log In