Whether you’re buying or refinancing, you have a number of choices. One of those is your loan term. While the overwhelming majority of home buyers and home owners elect to go with the 30-year mortgage, you may be wondering if a 15-year home loan might be a better choice for you.
There are some definite advantages to going with a 15-year mortgage. The biggest benefit, of course, is that it provides homeowners the opportunity to pay off their loan in half the time of a 30-year mortgage. If you have the financial cushion, a 15-year mortgage can get you thinking about the day you won’t have a mortgage anymore! Not only that, but over the life of your loan, you’ll pay significantly less interest than with a 30-year loan.
The big downside to a 15-year loan — or any other shorter term home loan? The monthly payments are significantly higher and you’re locked into that payment for the life of the loan or until you sell your home or refinance. Use PRMI’s handy home loan calculator to run a comparison of the monthly payments of a 15-year and 30-year home loan with the same loan balance. You’ll also see the difference in the amount of interest you’ll pay over the life of the loan. Then stop by one of our convenient offices to discuss loan options with a PRMI loan officer. The 15-year home loan isn’t for everyone. But it could be for you.