30 year vs 15 year mortgage

30-year and 15-year Mortgage Term- Which One to Go With?

Purchasing a house is a decision that lasts a lifetime. To make a worthwhile decision you must pay attention to every single aspect of the property you wish to buy. One of the most perplexing thoughts potential buyers face is which one to choose- 30-year vs 15-year mortgage?

The Basic Difference Between 30-year vs 15-year Mortgage

The most prominent difference between the two mortgages is the time it consumes to pay the loan. The time between the varies with respect to their specific years. In this way, a 30-year mortgage takes 30 years to complete the payment while the 15-year mortgage loan will take 15 years. However, other than this major difference, there are many other differences that set these 2 terms apart.

Since you'll have less time to pay the whole amount in full in case of a 15-year mortgage charge, you will more quickly. The 15-year loan will last for 15 years obviously saving you from heavy interest rates as you will be borrowing the money for a considerably low timespan.

Waiving off a loan is a wearying task and will keep you stressed until you're done with it so it's better to get done with it sooner. Meaning a 15-year loan will be paid faster and waived off comparatively quickly as compared to the 30-year loan. As you'll be paying more principal down monthly in case of the 15-year term, your equity builds up faster.

How to Decide Between the Two Terms?

Which mortgage to go with? This most confusing to find an answer for. But we'll help you decide. Undoubtedly, the 15-year term has a handful of advantages mostly because of the fact that it guarantees less amount of interest to be levied. On the contrary, it's not always the best for a couple of reasons. Which mortgage is suitable for you totally depends on your ease of payment and other factors.

The 30-year mortgage loan has a comparatively lower sum of money that needs to be deposited monthly which is more convenient for people who cannot afford to deposit such huge amounts monthly. This is one reason that makes the 30-year loan easier on financially constrained individuals. Since there are many other domestic expenses to bear, not everyone can pay such costly amounts easily.

Furthermore, qualifying for the 15-year term is not so easy. In order to get selected for it, you must prove your eligibility to be able to deposit monthly payments. It is essential for you to prove that your debt-to-income ratio is aligned with the loan scheme.

The 15-year loan comes with a compulsion to make the deposit on time as there is no flexibility. However, in case of a 30-year mortgage you are able to make additional payments. It's totally up to your convenience- if you would like to make it or not- you won't be penalized for it. If for any reason you do not pay at the designated time in case of the 15-year term, your home will be at risk of foreclosure.

Is 30-Year Fixed Loan Better Than 15-Year?

Every person has different requirements and way of living. It varies from one borrower to another, which of the two fixed loans suit you and your lifestyle. The 15-year mortgage works out for some people- who are mostly financially more able and stable. On the contrary, many people prefer going with the 30-year loan because of payment ease and flexible condition its allows. Some features that make the 30-year term more client-friendly are mentioned below.

The reason that makes the debate rule in 30-year's favour is the fact that it allows lower monthly payments. If you aren't sure if you can keep up with the heavy monthly payments of 15-year's terms, you can always choose to go with the former. It's better to opt for the lower monthly deposits to avoid any sort of inconvenience. In case you do have a good sum of money to pay, you can always pay extra.

Furthermore, it ensures a lot of tax savings. If you get selected to register your tax deductions, you can easily write off the hefty interest deposits you make on the 30-year term. If you plan on making your permanent residency, you're surely in no rush to pay off the loan. You can easily take your time to waive off the loan.

The Crux of 30-year vs 15-year Mortgage:

Your peace of mind and ease comes first and foremost. If signing up for 15-year mortgage will drain you to the core especially financially then it's of no use. It's better to go with the 30-year Mortgage then. Hefty monthly payments can be a problem for you and might also affect your routine expenditure. To relieve yourself from this constant burden, a 30-year loan can be a good option to choose.

Life is unpredictable-one must always be capable enough to deal with any unexpected circumstances at any time. Backup and smart thinking can save you from encountering a lot of inconveniences. If you have a doubt when it comes to a 15-year loan, feel free to opt for the other one. It's better to make extra payments as per your ease rather than being compelled to do so. If both you and your partner are at jobs and work together to manage the expenditure, then 15-year term might not work out for you as you'll always be at a risk. The 30-year loan might be easier for you and you can always pay more on the principal monthly.


There are multiple factors to consider and pay attention to when you're choosing between a 30-year and 15-year mortgage. The 15-year mortgage might sound better because of its comparatively less timespan and faster ownership. However, heavy monthly payments aligned with fixed designated timings can be a bit difficult to manage.

The easiest way to solve this debate is by weighing the pros and cons of both terms. Calculate your daily expenditure and your savings. Then compare it with the loan payments. If you face no clashes between the two you can easily go with the 15-year mortgage plan. Nonetheless, if find overlapping in your expenses, it's better to rethink the whole situation and opt for the 30-year term.

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