30 Year vs. 15 Year Mortgage Loans

A couple standing in front of a house holding a "sold" sign.

Posted on May 15, 2019 Last Updated: November 30, 2021

Which mortgage type is right for you?

Buying or refinancing a home is a big financial decision, one that KEMBA has helped countless central Ohioans navigate. There are many home financing options to consider, but two of our most common are the 30-year and 15-year, fixed-rate mortgage loans. To understand which is right for you, there are several things to consider.

There are benefits to both loan types that you should consider as you weigh your mortgage loan options.

15-Year Mortgage

  • Lower interest rate
  • Build equity faster
  • Less interest over time 30-Year Mortgage

30-Year Mortgage

  • Predictable monthly payments
  • Budget friendly repayment terms
  • More house buying power
A 15-year loan will help you build equity in the home faster and pay it off sooner. And while 15-year mortgage loans typically come with lower interest rates (a very good benefit), your monthly payment will be higher than that of a 30-year loan because you are stretching the principle repayment out longer with a 30-year. If you can afford the larger payment and are confident your income will remain stable, a 15-year loan term will likely save you tens of thousands of dollars over the life of the loan.

For most borrowers, a lower monthly payment on a dream home is still the more attractive and affordable option. A lower monthly payment is more manageable for many family incomes, and a 30-year term might provide more peace of mind for your monthly budget. The upside to a 30-year mortgage is you can always pay against your principle as you have discretionary income in your budget.

Whether you choose a 15- or 30-year fixed mortgage loan, KEMBA Financial Credit Union always offers the competitive rates and personal service to help make your dream come true. Have more questions? KEMBA Member Service Representatives have all the answers. Stop into any one of 12 Central Ohio KEMBA locations today, or call us at 800.282.6420, option 2.


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