There can be more stringent requirements for a 15-year versus a 30-year mortgage. Most Americans no longer benefit from the mortgage interest deduction, but if you do, consider the tax implications. The potential loss of mortgage interest tax breaks due to paying less interest.Maybe it makes more sense to borrow more against your house and to invest the proceeds for retirement. The opportunity cost of tying up money in home equity instead of other financial goals.If you’re struggling to qualify, a 15-year mortgage will only increase the challenge. Higher monthly payments compared to longer-term loans.With a 30-year mortgage, only a fraction of early payments go to retiring principal. A larger chunk of monthly payments go toward the loan principal rather than interest.What’s more, you pay less interest over the life of the loan. Rates on 15-year loans are significantly lower than rates on 30-year loans. Compared to a 30-year loan, you’ll pay down your balance much more quickly. Let’s look at both the benefits and drawbacks of a 15-year mortgage so you can see how one might fit your financial goals (or not). In addition, though we strive to make our listings as current as possible, check with the individual providers for the latest information. Our site has comprehensive free listings and information for a variety of financial services from mortgages to banking to insurance, but we don’t include every product in the marketplace. Our advertisers do not compensate us for favorable reviews or recommendations. However, this compensation in no way affects Bankrate’s news coverage, recommendations or advice as we adhere to strict Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. In exchange for placement of sponsored products and services, or when you click on certain links posted on our site. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.īankrate is an independent, advertising-supported publisher and comparison service. Our experts have been helping you master your money for over four decades.
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