Are you planning to buy a home in Austin and want to pay it off faster and save money? If so, then a 15-year mortgage can be a great way to pay off your mortgage in half the time and save tons of money on interest. Just keep in mind that to really get the most from this type of mortgage, you need to have enough income to keep on top of the payments, along with all your regular expenses. This fact alone can deter home buyers to stay away from a 15-year mortgage, since the payments are about 50% higher than a similar 30-year mortgage.

As with any mortgage, there’s pros and cons.  What are the pros and cons of a 15-year mortgage?


  • Owning your home faster. Your home will be paid for in only 15 years.  Plus you’ll have peace of mind that it belongs to you after it’s paid off.
  • Builds equity. Paying off the principal faster helps you build more equity.
  • Save money. As there’s fewer years of risk in a 15-year loan, they have a lower interest rate. And since the term is shorter, you save even more money on interest.


  • Higher payments. The payments will be 50% higher than a 30-year loan, so you need to be sure you can keep up with them.
  • Locked up equity. The equity you’re building is locked up in the home. The only way to use it is to sell the home or refinancing.
  • Missing other opportunities. Higher payments means you may not have enough money to take advantage of other financial opportunities, such as investments or matching your employers contribution to a retirement account.
  • Lower quality home.  Since you aren’t stretching your payments over 30-years, you won’t qualify for as high of an amount as you would with a 30-year loan.

To sum up, a 15-year loan is an ideal way for those who can afford the higher payments to save money and own their home more quickly. But if you’re not entirely sure your finances are stable, then you should avoid a 15-year mortgage. 

Check back on our blog twice a week for more real estate news, ideas, and local events in Austin and Lake Travis. You can search for the perfect home on our website using our powerful home search tools. You can also get free listing alerts of homes as they hit the market at And you can always feel free to call us at 512-657-4467​ to talk to an experienced agent today.