A 15-year fixed mortgage is, as its name suggests, a mortgage that’s paid off after 15 years. Since it
amortizes fully, after that amount of
time you won’t have to pay anything else. This type of mortgage has a
lot of benefits, and below we’ll share just a few of them.
1) No Need For Payments After Retirement
Here it highly depends on when in life you choose to take on the
mortgage. However, most people decide to take on a mortgage at around 30
years of age.
If this is the case for you, then it means you’ll be 45 years old
when your mortgage will be fully paid. There will be no need to worry
about having to use Social Security or pension checks to pay it off.
Another consideration is the fact that the older you are, the more
your health costs will go up. Having costs like that pile up while
having to make mortgage payments can be a huge problem. For that reason,
not having to pay off your mortgage after retirement is a tremendous
2) Your Home Will Be Yours Sooner
You might think your house is yours the minute you step into it.
However, in reality, it’s only yours after you have fully paid your
mortgage off. Until then, it can be repossessed if you fail to make
With a 15-year mortgage, your home will become yours in the blink of
an eye. Then, you’ll have plenty of time to enjoy other things in life,
knowing you already own your home.
3) You’ll Pay Less Interest
If you were to pick, say, a 30-year mortgage, there will be twice as
many years in which interest will add up. This will more than double the
amount you end up having to pay, as mortgage interest compounds over
As such, getting a 15-year mortgage will not only reduce the time
you’ll pay it off; it will also reduce the amount you pay back. Saving
both time and money is an amazing deal.
4) Get Lower Rates
On most 15-year mortgages, the amount you have to pay in terms of
rates is usually lower than for 30-year ones. As such, you’ll be saving
money in two ways. First, you’ll save by reducing the time, then, by
reducing the actual rate.
5) Learn To Push Yourself
Some people fear getting a 15-year mortgage. The reason is that they
think the payments will be too expensive. They think that getting a
30-year mortgage is likely a better idea.
If you can’t afford to make the payments of a 15-year mortgage, you
might want to reconsider. However, if you can afford it, but you’re
afraid, don’t be. Pushing yourself to achieve something you truly want
is a good thing. You’ll become a stronger person, and you’ll have more
reason to be proud of your achievement.
A 15-year mortgage has many benefits. The main one is simply that
you’ll be able to pay it faster, which means that you won’t worry about
it for long. This, in addition to the fact that you’ll be paying less
are very convincing factors.
If you’d like to learn more about 15-year mortgage plans, contact your mortgage professional for more information.