The majority of homeowners have a thirty-year mortgage. However, when possible and if it makes sense for you, a fifteen-year mortgage is actually a great choice for many reasons, especially if you are able to afford higher monthly payments. By paying your mortgage off in half of the time, you have the potential to save thousands, if not tens of thousands of dollars in interest! It also decreases your amount of stress as well. If you feel like your income will be steady and reliable for the foreseeable future and you are able to afford higher monthly payments, a fifteen-year mortgage is something we would recommend you look into.
To brief you on the fifteen-year mortgage terms, while it is fairly self-explanatory, it is a fixed-rate mortgage that must be paid off in fifteen years. Also, each payment must be made on time. Since it is a fixed-rate mortgage, the interest rate and principal will stay the same for the duration of your mortgage.
Another positive is that with a fifteen-year mortgage, you also have the opportunity to gain more equity in your home quicker. This is something that would greatly benefit you in the long run. Especially since you are saving a great deal of money in the process!
Keep in mind that although this sounds nothing but positive, you have the potential to be purchasing a smaller home or purchasing a home in an area you may not find favorable, since your monthly payments will be more expensive than a thirty-year mortgage. It is possible that you may not afford the same house that you would if you were to take out a thirty-year mortgage on it, versus is being a fifteen-year mortgage.
What it really comes down to is if you can afford higher monthly payments without a shadow of a doubt for the next fifteen years. If your income is not predictable and things may change in the coming years, we would recommend you really look into whether or not a fifteen-year mortgage is the right option for you.