What Are the Advantages of a 15-Year Mortgage over a 30-Year Mortgage?

A 15-year mortgage has two distinct advantages over a 30-year mortgage:

First, a 15-year mortgage will reduce the accumulation of interest over time. The longer your principal remains outstanding, the more interest will build up. In a 15-year mortgage, you will pay back that principal earlier, which will reduce your costs in the long run.

Second, a 15-year mortgage will often include a lower initial interest rate than a 30-year equivalent, further reducing total costs paid by you, the borrower.

However, remember that a 15-year mortgage is only appropriate if you can truly afford to meet the expenses and higher monthly costs.