15-Year Or 30-Year Fixed Rates Mortgage, Which is Better? - Heklang
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Fixed-Rate Mortgage 

Fixed-rate mortgage loans are one of the most popular types of amortized loans. They are loans that have a fixed interest rate and usually a fixed amount that needs to be paid regularly; throughout the term of the loan, the interest rate of them remains constant. These loans are beneficial since you can create a budget around them as the amount is predictable and remains the same throughout. These loans are long term loans; the span from about ten years to almost 30 years. However, it depends upon the borrower for how long they want to pay its installments. The following two are the most commonly opted durations, along with their advantages and differences.

Durations Of Fixed-Rate Mortgage Loans 

15-Year Fixed Mortgage Rate Loan

The 15-year fixed mortgage is a loan that needs to be paid off entirely in 15 years. These loans are preferred by salaried individuals or those with a fixed income. This loan allows one to make a budget around since these can be in the form of monthly payments. In addition to that, a 15-years fixed mortgage rate loan costs less in comparison to a 30-year loan.

Based on the time agreement as well as monthly fixed interest rates, Professional companies like Nextgen Mortgage Inc offer two durations of fixed-rate mortgage loans; other durations are possible depending on the circumstances and client’s requirements. The two most commonly opted are as follows:


  • Builds Home Equity Faster
  • You save money on interest
  • Pay off the mortgage loan in half the time for a 30-year loan

30-Year Fixed Mortgage Rate Loan 

This type of fixed-rate mortgage loan is said to be one of the most traditional and popular ones. It is a loan that needs to be paid in 30 years. Although the 30-years fixed mortgage rate loan has a high-interest rate, due to its long payback period, its monthly installments are lower than that of the 15-year fixed-rate mortgage; that is why they are easier to pay off.


  • Low monthly payments
  • Can allow a budget for you to save some cash

Differences Between 15-Year And 30-Year Fixed Mortgage Rate Loan

The primary difference between both is the time of the payback period. And this duration is directly related to the monthly installments and interest rates.

  • A 15 years mortgage loan has to be paid off in 15 years while 30 years mortgage loan has to be returned in 30 years.
  • There is less interest rate on a 15-year mortgage compared to a 30-year loan, which consumes a lot of money in the form of interest.

Determining The Best Type Of Loan Suitable For You

Choosing between a 15-year or 30-year fixed-rate mortgage loan is not an easy task. Whatever the selection you make, it will have long-lasting effects on your finances. Before you finalize your decision, consider the amount of savings you have. Also, please take into consideration all your other household bills and debts, it is better to clear them before applying for the loan; lest you get overwhelmed.

  • A 15-year fixed-rate mortgage will consume seemingly a significant amount but will benefit you because of the fewer monthly payments. So, if you have a good amount for a downpayment and want to build your home equity quickly, then this is a good option for you.

On the other hand A 30-year fixed mortgage rate loan has a higher interest rate but a lower monthly payment. So, this type of loan is useful for people who don’t have significant savings or cannot afford high monthly installments.


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