Is a 15 Year Mortgage Worth it?
Bydand Home Loans LLC
Bydand Home Loans LLC
Published on October 29, 2020
Is a 15 Year Mortgage Worth it?

Is a 15 Year Mortgage Worth it?

Photo by Luis Yanez from Pexels

When you get a 15-year mortgage, your monthly payments will be much higher than if you'd taken out a 30 year mortgage. Is it worth it? Here are a few instances where it might be.

A 15 Year Mortgage is Worth it if You Hate Debt

Everyone has different feelings and beliefs on the subject of debt. Some people, such as entrepreneurs or real estate investors, are comfortable taking out large amounts of debt. They realize that sometimes it makes sense to borrow money to make even more money. While they may not have been comfortable with it at first, they learn how to be okay with it.

On the other end of the spectrum, some people hate having lots of debt. They worked 2 jobs while going through college to make sure they didn't have to take out student loans. They've always paid cash for their cars. And while they may want to buy a home ASAP, they do want to be out of debt as quickly as possible.

Then you have people in the middle. These are people who don't want tons of debt but are willing to have "normal" debts such as a 30 year mortgage, student loans and a car payment.

Where do you fall on this spectrum? If you're closest to the debt-free camp, maybe it is worth it for you to get a 15 year mortgage. It's the fastest path to paying off a home, but still lets you get into it now rather than later.

A 15 Year Mortgage is Good if You'll Retire Soon

Do you plan on retiring soon? If so, it might make sense to go with a 15 year loan instead of a 30 year. That's because psychologically it can feel good to know that you won't have that big payment over your head during retirement.

It does mean you're paying more each month right now. But over the long run you'll save a ton of money by not paying for the loan an extra 15 years.

If you talk to some people about this decision, they may point out that you're giving up potential investment growth. After all, the stock market returns 10% on average each year, so it makes sense to invest it instead of pay off your 3.5% mortgage.

While that makes sense for some people, it's not the same for someone about to retire. You need money to be someplace safe such as bonds and annuities – not stocks.

A 15 Year Mortgage Has Lower Interest Rates

When you get a 15 year mortgage, you actually save money two ways:

  • You only pay for 15 years, so you pay much less interest over time
  • Your interest rate will (usually) be lower compared to a 30 year loan

While interest rate isn't everything, it's always nice to know this option gives you a lower rate!

Is a 15 year mortgage worth it? Sometimes – it just depends on your specific personality and situation. Send us an email at and we'll help you figure out the best type of mortgage for you.

Bydand Home Loans LLC
Bydand Home Loans LLC
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