Ginnie Mae Logo - Back to Home Page Your Path To Homeownership
Contact Us Subscribe Site Map
Search Entire Site
Search Only Apms and Guides

Home
About Ginnie Mae
For Issuers
For Investors
Your Path To Homeownership
HomeZone (For Kids)

30-Year vs. 15-Year Mortgage Terms

Typically, a 30-year mortgage term will have lower monthly payments than a 15-year mortgage term. If you decide on a 15-year loan, you will pay significantly less in total interest over the life of the loan, but your monthly mortgage payments will be higher. As a homebuyer, you will need to consider the implications of supporting higher monthly payments when accepting a 15-year term. Can you consistently meet those monthly payments over time? Look at the table below.

Advantages Considerations
15-Year Lower Overall Mortgage Cost Higher Monthly Payment
Builds Equity Faster Must Qualify for Higher Monthly Payment
You have Debt for Only 15 Years You have Less Cash for Other Expenses
Lower Interest Rate Less Money goes toward Tax Deductions
30-Year Lower Monthly Payment Higher Overall Mortgage Cost
Qualifying is Easier You Pay More in Overall Interest
You have More Cash for Other Expenses You have Debt for 30 Years
More Money goes toward Tax Deductions Higher Interest Rate
 

Previous         Next

 
Top of Page
 
PRIVACY POLICY
HUD Web Site