As home prices and mortgage rates continue to rise, many potential and current homeowners have begun to explore other options for financing a home – including 15-year mortgages. These loans typically come with much lower interest rates than the more common 30-year mortgages and can save borrowers an incredible amount of money in the long run. For those considering whether or not to take advantage of a 15-year loan, here are some of the positive benefits that come with them.

First and foremost, the most obvious benefit of a 15-year loan is the significantly lower interest rate. Because you’re paying off the loan balance much faster, the lender agrees to give you a better rate. So, depending on the size of your loan, you could end up saving tens of thousands in interest payments over the lifetime of the loan. This can significantly reduce the total cost of the purchase and ultimately your monthly payments.

Another great benefit is that homeowners who choose 15-year mortgages tend to build equity much faster. This means that the longer you stay in your home, the more built-up equity you have and therefore, you will have a larger stake in your property and more flexibility should you ever need to refinance your loan or sell your home.

The next benefit of a 15-year mortgage is that you will pay off your loan much faster than if you had chosen a 30-year loan. This means that you could potentially pay off your mortgage well before you expected, freeing up your monthly budget for other expenses or investments.

Finally, a 15-year mortgage typically comes with fewer fees than a 30-year loan. This is largely because the loan is paid off more quickly, and therefore there are fewer costs associated with taking out the loan.

All in all, the benefits of a 15-year mortgage are clear. By choosing a 15-year loan, you can save a substantial amount of money in interest payments while building equity in your home quickly and enjoying lower fees. Therefore, if you’re looking to purchase a home or refinance your loan, it’s definitely worth looking into the possibility of taking out a 15-year loan.