Buying a Home in Florida: Should You Choose a 15- or 30-Year Mortgage?

When buying a Florida home, your mortgage term is more than just numbers.

It shapes your budget, equity, and long-term financial picture.

Here’s how to decide between a 15-year and 30-year mortgage.

1. Monthly Payment Comparison

• 30-Year Loan: Lower monthly payments
• 15-Year Loan: Higher payments, but loan is paid off faster

On a $400,000 mortgage at 7%:

• 30-year = ~$2,661/month
• 15-year = ~$3,595/month

2. Total Interest Paid

• 30-year: Pay significantly more in interest
• 15-year: Less interest and faster equity build

That same loan:

• 30-year: ~$558,000 in interest
• 15-year: ~$247,000 in interest

3. Equity Building

• 15-year builds equity faster (good if you plan to refinance or sell in 5–10 years)
• Great for early retirement goals

4. Flexibility

• 30-year gives more monthly breathing room
• You can still pay extra to reduce interest without being locked in

5. Qualification Differences

• You may qualify for more home with a 30-year loan due to lower monthly debt ratio
• Lenders assess based on debt-to-income ratio (DTI)

Which Is Right for You?

Choose a 15-year if you:

• Have strong income and low debt
• Want to minimize interest
• Plan to stay long-term

Choose a 30-year if you:

• Want lower monthly payments
• Prefer flexibility
• Plan to invest extra money elsewhere

Final Thought

There’s no one-size-fits-all answer.

Let your lifestyle, income, and goals guide your decision.

📞 Call Michael Renick at 941.400.8735 to weigh your options and get prepped with a smart Florida mortgage plan.

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• 📞 Call Mike: 941.400.8735
• 📍 Explore our blog series: Questions Buyers Are Asking
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