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15-year fixed rate mortgage versus a 30-year fixed rate mortgage

If you were given a chance to choose between a 15-year fixed rate mortgage versus a 30-year fixed rate mortgage, choose to go with the 30-year fixed rate mortgage, and here’s why.

Although a 15-year fixed rate mortgage typically has a quarter to half a percent better end interest rate, a 30-year fixed rate mortgage will always have a lower monthly payment.

In this crazy, volatile economy, it’s always better to get in a 30-year fixed-rate mortgage option to pay more every month. At RCG Mortgage, we can structure that with you and see how long it would take to pay off your mortgage in 15 years. If the market hits the fan, you will be fine with that high 15-year fixed payment.

Make sure you always speak with your mortgage professional and your financial advisor to make sure you do what’s best for you.

To dive a little deeper into this debate, we can look at this pros and cons list from Forbes advisors for a 30-year mortgage and a 15-year mortgage.

Pros of a 30-year Mortgage

  • Lower monthly payments since the loan are spread out over 30 years
  • You can always pay more than the required minimum to pay off your mortgage faster
  • Lower payments mean you could qualify to buy a more expensive house

Cons of a 30-year Fixed Mortgage

  • Will end up paying more in interest over the life of the loan compared to a shorter term
  • Lower monthly payments typically mean it will take longer to build up equity in your home.
  • Higher interest rates (typically, the longer the term, the higher the rate)

Pros of a 15-year Mortgage

  • Pay less in interest over the duration compared to a 30-year term
  • Pay off the loan and own the home sooner with the shorter term
  • Get rid of private mortgage insurance (PMI) sooner by reaching the 20% equity threshold faster

Cons of a 15-year Mortgage

  • Higher monthly payments due to the shorter term
  • Less wiggle room in your monthly budget and fewer funds available to put into savings
  • Higher monthly payments might not allow you to afford the house you want”

Witkowski, R. (2022, October 16). 15-year vs. 30-year mortgage calculator: How to decide. Forbes. Retrieved November 17, 2022, from




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