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11 pros and cons of a 15-year mortgage

If you want to pay off your loan debt sooner, go for a shorter term like 15 years. You’ll save on interest this way too. However, please note that your monthly payments will rise significantly.

Pros of a 15-year mortgage

  • Saves interest: You will pay less interest over the life of the loan if you go with a 15-year mortgage instead of a 30-year mortgage.
  • Builds equity faster: Homeowners with a 15-year mortgage build equity in their homes twice as fast as those with 30-year mortgages.
  • Lower total cost: In addition to paying less interest, you’ll also pay less in mortgage insurance (if any) and property taxes over the life of the loan.
  • Higher monthly payments: While this may seem like a con at first, the increased monthly payment may actually force you to be more disciplined with your spending – leading to long-term financial stability.
  • More stable interest rates: 15-year mortgage rates are often lower than 30-year mortgage rates, and they’re less likely to fluctuate in the future.
  • Gives you peace of mind: If you have a limited income or are worried about making ends meet in retirement, a 15-year mortgage gives you the peace of mind of knowing your home will be paid off when you no longer work.

Cons of a 15-year mortgage

  • Shorter loan term: Obviously, the biggest con of a 15-year mortgage is the shorter loan term. This means you’ll have to make higher monthly payments, which may be a challenge if you’re on a tight budget.
  • More expensive in the long run: Even though you’ll pay less interest overall, a 15-year mortgage will be more expensive in the long run than a 30-year mortgage. This is because you’ll be paying off the principal of the loan much faster.
  • More difficult to qualify for: In order to qualify for a 15-year mortgage, you’ll need to have a strong credit score and a steady income. This can be a challenge for some borrowers.
  • Not as flexible: A 15-year mortgage doesn’t give you as much flexibility as a 30-year mortgage. If you need to sell your home or refinance for any reason, you may have to pay a penalty.
  • Requires discipline: If you choose a 15-year mortgage, you’ll need to be disciplined with your spending in order to make the higher monthly payments. This can be a challenge for some people.


A 15-year mortgage has some serious advantages over a 30-year mortgage. However, it also comes with some disadvantages. You’ll need to decide if the pros outweigh the cons before you commit to a 15-year mortgage.