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The Hood Magazine

The Benefits of a 15-year Mortgage

Feb 27, 2022 02:59PM ● By Plains Commerce Bank
By: Plains Commerce Bank

If you are looking to purchase a home and want to pay it off sooner rather than later, you might
want to consider a 15-year mortgage. They are quite cost-effective in the long run, but you may
have to put a little more effort into budgeting for the monthly payments. Here are some benefits
of the 15-year mortgage that you should consider when diving into different mortgage options.

The 411
First and foremost, you’ll own your home in half the time it would take with a traditional 30-year
mortgage. Also, many experts say that you could possibly save more than half the amount of
interest of a 30-year mortgage because lenders usually offer the 15-year mortgage at a slightly
lower interest rate. And remember, small increases in your monthly payments may not break your
budget, but could help in paying down the principal of your loan faster. If you increase every
payment even slightly, you’ll do yourself a favor by reducing the total amount paid over the life of
the loan.

Put a Plan in Action
The best plan of action is to do your homework, contact a trusted lender, and think strategically
when setting up your payment plan. Remember, a 15-year mortgage plan has lower interest rates,
higher payments, but a quicker path to owning your home outright.

Next Steps
You might still have questions, and that’s perfectly fine. That’s where my team at Plains
Commerce Bank can help. We’d be happy to connect so you can get a better understanding of
what mortgage option would benefit you the most. When it comes to new mortgages or
refinancing, you’re going to want to contact a seasoned mortgage lending professional, and I'm
eager to help.


Member FDIC Equal Housing Lender
All credit and loan products are subject to credit approval. Loan programs subject to qualification.
Conventional 30 year loan based on $200,000 loan, 20% of down payment, Adjusted origination fee of $2000 with 360 payments of $1370, 3.990% Interest Rate, 4.157% Annual Percentage Rate. Other Fees may apply, estimated taxes and insurance are included. Actual payments may be greater. All credit and loan products are subject to credit approval. Interest rate and Annual Percentage Rate is effective as of 02-18-22. Rates subject to change daily. This is not an offer of credit or commitment to lend. Financing shown for illustrative purposes only. Conventional 15 year loan based on $200,000 loan, 20% of down payment, Adjusted origination fee of $2000 with 180 payments of $1809, 3.125% Interest Rate, 3.405% Annual Percentage Rate. Other Fees may apply, estimated taxes and insurance are included. Actual payments may be greater. All credit and loan products are subject to credit approval. Interest rate and Annual Percentage Rate is effective as of 02-18-22. Ra