One of the common questions people have regarding mortgages is whether a 15-year or 30-year mortgage is better? Like many financial decisions, the right answer depends on your personal financial circumstances, objectives, and concerns. What stage of life are you in right now? All of these are factors in deciding on a 15- or 30-year mortgage.

A 15-year mortgage can save you a lot of money. Using a 15-year mortgage you will pay less money to buy your home. However, your monthly payment will be higher than going with a 30-year mortgage.

So, to decide what mortgage is right for you, there are few things to consider.

Can you afford the higher payment of a 15-year mortgage?

It's a pretty simple question. Can you make the monthly payment with a 15-year mortgage? Will you have enough money left over to pay for all of your living expenses, contribute to your retirement, and save a little for rainy days? If not, you may want to opt for a 30-year mortgage.

 

Do you have money saved up for a rainy day?

Are you able to financially handle emergencies and tough times? What if unforeseen circumstances, like job loss, affected your life? Would you have enough savings left to help you with the higher payment of a 15-year mortgage?

Do you have money saved for a down payment?

Having a good sized down payment for a home can help you achieve a lower payment. This might allow you to opt for a 15-year mortgage, own your home sooner, and save lots of money over time. However, your current financial situation may be more suitable for a 30-year mortgage even with a down payment. The lower payment may allow you to focus on other financial priorities.

Is a lower payment your goal?

Perhaps you desire a lower payment for specific reasons. Maybe you'd like the extra money each month to pay down debt or contribute to investments. Maybe you are saving for a particular purpose. It all depends on your specific needs and wants.

Useful Mortgage Resources:

Mortgages Articles

Visions Donates $100,000 to Habitat for Humanity

"The Big Give" 2021 Endwell, NY – Visions Federal Credit Union today announced a gift of $100,000 to ten Habitat for Humanity chapters in New Jersey, New York, and Pennsylvania. Each chapter will receive $10,000 as part of “The Big Give.” Giving back is a core part of Visions'…

Making Sense of Mortgages

Making Sense of Mortgages Closing costs, PMI, ARM, escrow…figuring out what makes up your mortgage can be complicated. With so many factors to consider, how do you make sense of it all? Well, you can start by breaking down some of the most common terms and considerations you'll…

When Should You Consider an Adjustable Rate Mortgage?

When Should You Consider an Adjustable Rate Mortgage? Looking for a lower-interest alternative to the traditional 15- or 30-year fixed rate mortgage? Consider an adjustable rate mortgage, like the popular 5/5 ARM, for any number of needs or situations. What's a 5/5 ARM? Well, th…

Referral Program

Get rewarded for sharing Visions with your friends and family.

Get $25 when they open an account!

Refer Now

Visions Federal Credit Union

Log in here with your Online Banking ID:



Online Enrollment

Forgot Password

Forgot User ID/Unlock Account

You are leaving the Visions Federal Credit Union web site. The privacy and security policies of the external link may differ from Visions Federal Credit Union. Visions Federal Credit Union does not own or control external links and is not responsible for the availability or accuracy of their content.

Continue