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Is 15 year fixed payments usually bigger than 30 year fixed?

If so by how much percentage per month? Overall is 15 year fixed better? by SimonLucas from Westlake Village, California. Jan 29th 2011 Reply


Michael Bardy (LendingPro)
#24 ranked lender in Ohio - 72 contributions

If by better, you mean cheaper, than YES, a 15 year mortgage is better than the more traditional 30 year term. With a shorter term, your payments are going to be higher, but every dollar more that you are paying on a 15 year loan is going directly to the principal. This will help pay your loan off faster and save you thousands of dollars in interest over the term of the loan.I always recommend that a borrower considers a 15 year (and even a 10 year) term when reviewing their options. If this payment fits your budget you need to seriously ask yourself what you would be doing with that money otherwise. There are very few decisions someone can make that could save them so much money and vastly improve their overall financial position.Mike BardyVanDyk Mortgage877-730-6008 x 151

Jan 29th 2011
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

15 year fixed payments will ALWAYS be larger than a 30 year fixed payment, given the same loan amount. The reason is simple. You are paying it off in half the time. In order to do so, you have to make larger payments. Your interest rate on the 15 year fixed will be better than the 30 year fixed. If you can afford to make the higher monthly payment you should do so as you will save a TON of money over the life of the loan by doing so. Joe Shamie 877-662-3321 x-102

Jan 31st 2011
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Patrick McCarthy (PatrickM)
#22 ranked lender in Ohio - 196 contributions

15 year rates are generally lower than 30 year rates. The interest is calculated on the daily balance of your loan. A 15 year loan will apply more money to the principal, thus creating less interest due each month. More of each following monthly payment is then applied to principal and pays the loan off quicker. Depending upon your current rate, you may be able to have the same payment on a 15 year loan. Feel free to call on me at 866-901-3576.Pat McCarthy Northpointe Bank

Jan 31st 2011
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Matt Baker NMLS#190779 (MattBaker)
#31 ranked lender in Arizona - 75 contributions

Better is a relative term. But in terms of paying less interest over the life of the loan, then 'Yes" it is better. The 15 year loan is a lower interest rate, but because you are amortizing the loan amount over 15 years rather than 30 years, you will see a higher payment. I can run the numbers and calculate the total savings over a 30 year, and the reduction in interest over the life. The number is significant so from a financial background, if you can afford the higher payments then it is better to pay it off in 15 years to save interest of the back of the loan. Give me a call and I would be glad to run those numbers for you. Matt Baker 480-747-6116, CA-DOC190779

Feb 1st 2011
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