Optimal Finance Daily - Financial Independence and Money Advice
3057: 5 Reasons to Choose a 15-Year Mortgage by Andy Hill of Marriage Kids and Money
Mar 1, 2025
Andy Hill, an expert in financial strategies and the voice behind Marriage Kids and Money, discusses the compelling benefits of choosing a 15-year mortgage. He shares how this decision can lead to significant savings, with potential reductions in interest payments by nearly $100,000. Hill emphasizes the discipline gained from such a mortgage, accelerating debt elimination and paving the way for a more liberated financial future. His insights might inspire a shift in perspective for anyone considering their home loan options.
10:49
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Quick takeaways
- Opting for a 15-year mortgage can save nearly $100,000 in interest over the loan's lifespan, promoting significant long-term financial savings.
- The higher monthly payments associated with a 15-year mortgage encourage disciplined financial behavior, helping homeowners reduce debt and achieve financial freedom faster.
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Key Advantages of a 15-Year Mortgage
Choosing a 15-year mortgage offers significant financial benefits compared to a 30-year mortgage. For example, by opting for a 15-year mortgage at a 3% interest rate instead of a 30-year mortgage at 4%, borrowers can save nearly $100,000 over the life of the loan. This substantial savings arises from the reduced total interest paid, which would total approximately $48,609 on the 15-year term compared to $143,739 on the 30-year term. This makes the 15-year mortgage a financially savvy option for those committed to substantial long-term savings.
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