A puzzling range of mortgages may be accessible, but for the majority of home buyers, in practice, there’s only one. The 30 year fixed mortgage is realistically an American prototype. It’s the trail that generations of Americans have taken to first-time homeownership.

Many buyers also have benefited from a 15-year fixed-rate mortgage. Both the loan types are structurally identical – but main dissimilarity is the term. While a 30 year fixed mortgage loan in California can make your monthly installments more pocket-friendly, a fifteen-year mortgage usually cost less in the long run.

What are the advantages of 30 years fixed mortgage loans?

In a 30-year mortgage, obviously, that balance reduces in size much more steadily – effectively, the buyer is borrowing the same sum of cash for more two times as long. Indeed, it is more than two times as long instead just twice as long because, for 30-year finance, the principal amount doesn’t decline as quickly as it happens for fifteen year finance.

The higher the interest rate, the greater the gap between the 2 mortgages! For example, when the rate of interest is four percent, the borrower in fact reimburses nearly 2.2 times more interest to have a loan of the same sum of principal over thirty years in comparison to fifteen-year finance.

The best thing about a thirty year mortgage is the considerably low monthly payment. And even if affordability is not a problem, there’re other benefits such as:

  • The lower payment may let a borrower to purchase more house than they’d be able to pay for with fifteen year finance since the same monthly payment would let him to get a larger loan over thirty years.
  • The lower payment lets a borrower to make savings.
  • The lower payment frees up funds for other objectives.


The choice between a 30-year or 15-year fixed mortgage loan is one that’ll have an impact on your funds for years to come, so ensure to consider the numbers prior to deciding which is perfect. If your goal is to repay the mortgage faster and you can pay for higher monthly installments, 15-year finance might be an excellent option for you. On the other hand, the lower monthly installment of a 30 year fixed mortgage loan in California may let you purchase more houses or free up money for other financial objectives. Last but not least, equipped with adequate information will help you in deciding the best fixed mortgage loan option out there.

Sources from – https://uberant.com/article/877032-what-should-i-choose-15year-or-30-year-fixed-mortgage-loans/