There are different types of mortgage loans that you can take out, but what’s similar in all of them is payment duration. If you were to break down most loans, it usually comes down between a 15-year or 30-year period, which both come with their own set of advantages and disadvantages. To determine which loan is best for you, learn how the process goes for these two loans.

The 30-Year Mortgage Plan

Since the duration of the loan is longer for this type of loan, the monthly rates are relatively lower than a 15-year plan. 

This type of mortgage loan is also more popular with homebuyers who don’t have long-term plans to stay in the home they bought. People with the idea of expanding their families over time will want to find a much bigger home. This loan makes it much easier to refinance their mortgage to a home fit for a growing family.

The lower rates are also another reason why people go after this loan. With less to pay monthly, they can repay other debt along the way, such as home repair projects, education funds for the kids, and emergency funds and savings. 

The disadvantages are the same for a much shorter duration. Inflation happens year by year, meaning that making payments won’t necessarily be easier as time goes on. The longer you have an obligation to this loan, the less you are likely to save for the future. 

The 15-Year Mortgage Plan

15-year loans have the advantage of time on their hands over 30-year loans. The monthly rates are significantly higher given the shorter time frame, but it can save you financial trouble in the long run.

Every homeowner welcomes the day when they get to stop paying the mortgage. With this loan, you could reach that day much sooner. It’s an ideal plan for someone with a much higher income and is certain that the house they bought is their forever home.

Which Loan Is Better for You?

It all comes down to your financial capabilities. When it comes to paying off a mortgage, consistency is key so that you can repay your debts and maintain your credit score. If you can choose the 15-year plan, you will gain equity in your home more quickly. But if you can’t do it, a 30-year loan will be just fine. Consult your mortgage broker for the best options for your current income level and what you can expect in the future.


Both mortgage payment plans come with their own benefits, so ultimately, there really isn’t one choice that is better than the other. It is a matter of your financial capacity and stability. It’s best to have discussions with mortgage brokers who have industry insight so that you can figure what works best for a household like yours.

If you’re still undecided on which mortgage plan you’d be most comfortable with, perhaps a better way to start is to look at the best mortgage rates in your area. Loan Solutions Now has the best plans for people in Kentucky, Florida, Indiana, and Tennessee. Contact us today!