Are 15 Year Loans a Good Idea?

15 year loans are advantageous because the balance is paid off quicker. A comparison between a 30 year loan and 15 year loan, may prove that a 15 year loan is not a feasible option because the payments are higher.

Mortgage Rates and Payment

15 year loans can save you a significant amount of interest, over the life of the loan. Rates are also typically lower for 15 year mortgages than those offered for 30 year mortgages.

Although your interest is lower, the monthly payments are higher because the amortization, the length of the loan, period is reduced.

Additionally, it is easier to qualify for a 30 year loan than it is to qualify for a 15 year loan because the monthly payments are lower for the 30 year mortgage.