Should You Choose a 15, 20, or 30-Year Mortgage?

By Monique Walker

Monique Walker has 21 years of experience successfully buying and selling homes in the Phoenix market. She knows the neighborhoods, schools, and the local economy. Monique and her team do all the leg work, keeping you up-to-date with new listings and conditions as they impact the market.

Are you feeling overwhelmed by all the mortgage options available? Choosing between a 15-year, 20-year, or traditional 30-year mortgage can be confusing. Here are their key differences:

The 30-year mortgage is famous for a reason. Lower monthly payments make your budget easier, especially if you’re juggling other goals like retirement savings or college funds for the kids. But here’s the catch: over time, you’ll pay much more in interest. Those extra dollars could be going somewhere else in your financial needs.

Conversely, a 15-year mortgage comes with a lower interest rate. That means you’ll save a significant amount over the life of the loan. The downside? Your monthly payments will be about 30% higher than a 30-year loan. If you can swing it, you’ll own your home outright sooner and pay less interest overall.

Don’t overlook the 20-year mortgage. It’s the perfect middle ground. Payments are about 15% higher than a 30-year loan, but the interest rate is lower. You’ll save money over time without the steep monthly payments of a 15-year loan.

Picking the right mortgage is about fitting your long-term plans and comfort level. Think about how each option affects your life today and down the road. Whether you want lower payments now or to pay off your home faster, each path has perks.

You don’t have to figure this out alone. If you’re unsure which mortgage term fits your goals, I’m here to help. Contact me at (602) 413-8195 or monique@moniquesells.com, and let’s find the best choice for your home and future.