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Which is Better, 15-year or 30-year Mortgage?

When you decide to take out a mortgage, you'll have to choose how long you want it to last. This begs the natural question: which is better, a 15-year-long mortgage or a 30-year mortgage? No matter which option you choose, there are significant pros and cons to consider.

Pros and Cons of a 15-year Mortgage

A 15-year mortgage is the fastest way to pay off your loan, at the price of a much higher monthly payment.


  1. Less interest. Since this loan can be paid off relatively quickly, there is less time for interest costs to build up over time.
  2. Own your home more quickly. Since this loan takes less time to pay off, that means you'll have less time to wait to pay off your home.
  3. Build equity. A 15-year mortgage gives you the ability to pay off your debt relatively quickly, which increase your equity.


  1. Higher monthly payments. Since you have less time to repay your loan, each monthly payment will be far more expensive.
  2. Less security. Since you will be spending more money per month on your mortgage payments, you have less money for unexpected expenses. This can lead to greater debt.

Pros and Cons of a 30-year Mortgage

While a 30-year mortgage inherently takes a long time to pay off, it still offers notable benefits and is accessible to a broader range of homeowners.


  1. Lower monthly payments. Since your mortgage will be spread out over a much longer period of time, each month's mortgage payment will be far lower than a 15-year mortgage would be.
  2. More money for savings every month. Since you won't have to spend as much money on your monthly payments, it is easier to save money every month with a longer mortgage. This is good for preparing for retirement or unexpected expenses.


  1. Higher interest cost. Because your payment is spread out over a very long period of time, interest expenses can stack up quickly.
  2. More debt. Since the mortgage lasts such a long time, a 30-year mortgage can be a major blow to your equity and saddle you with debt for the long term.
  3. Less equity. Because of the lengthy loan time, it takes longer for equity to build up.

Which Mortgage Is Right for You?

The best mortgage option for you depends on how much money you are willing to spend in the short and long terms. If you can qualify for it, a 15-year mortgage can reduce your expenses in the longterm and help you pay off your debt more quickly. However, it is more expensive in the short term and leaves you with less money for savings or emergencies each month.

Meanwhile, a 30-year mortgage is far cheaper in the short term, making it accessible for a wider range of incomes. Interest costs do build up over the years, but a 30-year mortgage offers more month-to-month flexibility due to the lower principal payments.

Why Choose Big Life Home Loan Group?

We know that choosing the right mortgage is a major decision, so that's why we're here to help. At Big Life Home Loan Group, we have a team of industry professionals who are experts in choosing just the right mortgage for our clients.

Contact Big Life Home Loan Group Today

Our team of experts is eager to help you discover which mortgage option is right for you. To learn more about our home lending services, contact us today!


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