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Your future as a homeowner looks bright. Act now.

At this point, you’ve most likely set your sights on the potential home of your dreams. Pre-approvals are secured, inspections squared away, and now’s the time to settle on the fixed-rate mortgage that’s right for you.

We want to help you make the best financial decision. Below we’ve spotlighted some of the many advantages a 15-year mortgage option provides when purchasing a new home.

Less Interest Over Time

A 15-year fixed-rate mortgage will accrue less interest than a 30-year fixed-rate loan simply because it has less time to accumulate. For example, let’s say you have a $350,000, 30-year fixed-rate mortgage at 4.5% interest. You will end up paying $1,773 a month for a total of $638,280 over the life of the loan (excluding taxes and fees)—meaning you will pay about $288,280 in interest. That could be enough for another house.

Ultimately, a 15-year fixed-rate mortgage accrues less interest over time than something longer, like a 30-year loan, mainly because there’s less time for interest to accumulate.

For example, of the interest rate for a 30-year loan is 3.5%, on a $450,000 home, you end up paying a little over $2,020 a month. This totals out to $727,452 in payments, and $277,452 in interest. That $277K is enough to by another home is some areas.

Now, take that same $450,000, with a 15-year loan and the same interest rate, and you end up paying $579,054 in total payments, and $129,054 in interest. That nearly a 54% decrease in money you end up spending over the course of the loan.

Also, remember that most 15-year fixed-rate mortgages have lower interest rates that their 30-year counterparts, so if your plan is to spend as little money overall, locking in a 15-year mortgage is your best bet.

Imagine your futures as homeowners. Looks good, huh?

Freedom to Invest Sooner

Although a 30-year loan allows you a little more wiggle room in your monthly budget throughout the duration of the mortgage, 15-year mortgages get paid faster. This frees up your current capital sooner, allowing you to upgrade your current home or save up for something special.

Some people find the financial flexibility of 30-year loans more attractive, but you also have to consider your unique lifestyle choices and family situation. Perhaps you’d like (or need) to move sooner than the duration of the loan? You’ll then need to find a way to continue the monthly payments or sell for potentially less than the remaining balance on your loan.

Increased Equity

The quicker you pay off your mortgage, the sooner you can build equity. With a 15-year fixed-rate mortgage you will build equity in half the time it takes with a 30-year mortgage. Having high equity on your home allows you to increase your chances of taking out home improvement loans, a home equity line of credit, a second mortgage and more.

Naturally, a 15-year mortgage will get you to that financial goal faster, but remember to keep your personal situation in mind when choosing the mortgage option that’s right for you.

FAIRWINDS is happy to provide current and potential members with the resources needed to make the best decisions regarding the future of your new home. For more information, be sure to contact us today or check out our mortgage page at

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