#MortgageComparison #15vs25Years #ConventionalLending
Hey everyone! 👋 So, I’m facing a bit of a dilemma here with two different mortgage options on the table. I could really use some advice and insights from all of you savvy individuals out there.
Here’s the scenario: I have the choice between a 5.99% 25-year fixed mortgage or a 6.25% 15-year fixed mortgage. Both come with no early payment penalties, and I plan to pay either off in 15 years (by paying more monthly with the 25-year option). So, which one do you think is the better deal in the long run?
Here are some factors to consider:
– Lower interest rate with the 25-year mortgage
– Faster payoff and potentially saving on interest with the 15-year mortgage
What do you think would be the smarter choice here? Any personal experiences or tips to share? Let’s help each other out with some valuable insights! 💡🏡
I’m leaning towards the 15-year mortgage for faster payoff and potential interest savings, but I’d love to hear what you all think. Let’s discuss! 🗣️💬
I will take the smaller interest, that will let you more monthly room for early payments. That will let you, occasionally to not extra pay (like on Christmas gifts period, or summer holidays, for example).
Yeah this is easy, take the 25 yr mortgage at a lower rate, and just pay extra on it monthly to pay it off in 15 years.
Take the 25, it’s both a lower interest rate AND will offer you more flexibility. This is a no brainer and you shouldn’t even spend another second considering it
No brainer. 25 yr is a lower rate.
That sounds crazy. An inverted rate curve is very unusual. If the 25 year has the same closing costs, definitely take the lower interest rate.
You’d pay less monthly with the 25 year because of the lower interest rate even with the same principal payments, not more.
Depends, I am in sales and make bursty commissions. I want the safety of a longer term payment with the flexibility to pay down faster as I get extra money.
I would take the longer term one, but it will cost me more over time to allow me the flexibility to live out of my base income.
If your income is fairly stable, then go the 15 year route
What are the closing fees and points pay down? I highly doubt there’s 0 points. I want review the itemized closing docs.
Why is the 25 year interest rate lower? I thought shorter terms usually have lower rates.
I would do the 25 regardless of the rate, because you can just pay it down like a 15 year. Plus, if you get in a jam, like unemployment or some emergency, you have a lower payment to worry about.
25 year. You can pay it on a 15 year amortization anyway.
Always take the longer unless big discount. You can always pay faster if it makes you crazy having a mortgage. (It shouldn’t, but…)
It’s very fishy to me that a 25 year would be cheaper than a 15 year. And when I was shopping for mortgages the 20 and 25 year options often had the same rate as a 30 year. You should read the fine print / do some research.
From the info you posted it seems the 25 yr is best. Back in early 2022, my daughter was offered a 30 yr at 4.25% or a 15 yr at 3.75%. Her and her husband have plenty of income so they opted for the 15 yr. Can anyone explain why the rates for a longer mortgage have reversed, I think I know (direction of rates, rate environment) but I’d like others explanation.
Go with 6.25% 15yr, you’ll save thousands in interest over the long haul.
What is the interest rate for a 30 year?
I would never do 15yrs. Why lock yourself down when you can do 30yr and pay more each month if you really wanted too.