Disadvantages of 15-Year Rate Mortgages

The disadvantages associated with a 15-year rate mortgage are really the qualifiers that will tell consumers if this is the mortgage for them.

1. The monthly payments for this type of loan are higher than those for a 30-year mortgage, roughly 10 percent to 15 percent higher per month.
2. Because borrowers pay less total interest on the 15-year fixed rate mortgage, they lose the maximum mortgage interest tax deduction.