A Closer Look at 15-Year Loans
Why Choose a 15-Year Loan?
A 15-year fixed-rate mortgage is ideal for borrowers who want to build equity faster and save significantly on interest over the life of the loan. Since you’re paying the balance off in half the time of a 30-year loan, you’ll own your home free and clear much sooner.
The benefits: Lower interest rates, faster equity growth, and huge long-term savings on interest.
The trade-offs: A higher monthly payment which means you’ll need to be comfortable with a larger financial commitment each month.
If your budget allows, a 15-year loan can be a powerful way to reach your financial goals sooner. If not, you can always start with a 30-year loan and make extra payments toward principal when possible giving you the flexibility of both worlds.
Our team can walk you through each scenario and help you decide which loan term best fits your goals and comfort level
Are 15-Year Loans Harder to Qualify For?
Not necessarily the qualification standards (like credit score, income, and debt-to-income ratio) are generally the same as a 30-year loan. The main difference is the higher monthly payment, since you’re paying the loan off in half the time.
Because of that, lenders take a closer look at your income and debt levels to be sure you can comfortably handle the payment. If your budget supports the higher monthly amount, qualifying is usually just as straightforward as any other fixed-rate loan