Benefits of the 15-year mortgage vs. a 30-year mortgage

Understanding mortgages and working out what is the best choice for you can be tricky business. With so much information on the internet, some of which can be misleading, it is hard to know which sources to trust. That is why Eminence Mortgages is here to lend you a supportive hand every step of the way. You can rely on us to give you the best advice for you. One thing you may be wondering on your mortgage journey is whether you should get a 15-year or 30-year mortgage. 

Whilst the 30-year mortgage is the most popular mortgage, it is not the only option out there. If you opt for a 15-year mortgage, you will pay back more per month, and in return be given a lower interest rate. Of course, this means that over the time of paying back your mortgage, you could save a lot of money over the length of the loan.

There are several benefits to a 15-year mortgage, such as owning your home in half the time, saving money in the long term, and building home equity faster. Home equity is the difference between what your home is worth and what is left on the loan. The cons are that your monthly mortgage payment will be considerably higher, and for this reason lenders want to ensure that you are able to repay the loan, so it could be more difficult to qualify for. 

On the other hand, 30-year mortgages have the advantages of lower monthly payments, and thus meaning you may be able to afford a larger house. However, in the long term, you will have higher interest payments. 

On the whole, it is probably best to look at your own needs and requirements to work out which option suits you better. Get in touch with us today to receive advice and talk through your options with a professional. 

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