If you have the financial means to handle the monthly payment, a 15-year mortgage in Sterling Heights, Michigan could be a fantastic option. You could save tens of thousands of dollars in interest, and you’ll pay off your home much, much faster than through other loan programs. However, a 15-year mortgage is a major decision – one that will have a profound impact on your financial future. A Gem Home Loans professional can work closely with you to make sure you are 100 percent confident you’re making the right choice.

A Quick Look at Home Loan Basics

15 Year Mortgage Sterling Heights MichiganTwo of the most common types of home loans are government-backed and conventional loans. As the name implies, a government-backed loan is ensured by the United States government. One very popular government-backed loan is an FHA (Federal Housing Administration) loan. It offers very favorable rates and terms, and is perfect for a first-time homebuyer.

A conventional loan isn’t guaranteed by a governmental agency. As a result, it can be harder to get because you’ll need a higher credit score. But conventional loans offer more flexibility. If, for instance, you received an FHA loan, it would only be for your primary residence. You couldn’t get a government loan to buy a vacation house, or to buy a house you plan on renovating and selling (a practice known as “flipping”).

Government and conventional loans also differ when it comes to the amount of money you need to put down. Your down payment for an FHA loan will usually be 3.5 percent. With a conventional loan, you’ll typically have a 3 percent down payment. Your credit score will play a huge role in how much you’ll pay. If it’s between 500-579, then you might have to put as much as 10 percent down.

The Benefits and Drawbacks of Obtaining a 15-Year Mortgage

There are a lot of home loan programs out there, of course. The sheer number of them can be overwhelming for some people to try to navigate. At Gem Home Loans, however, we’ll make it simple. We’ll spell out all your options, and then use our years of experience to recommend the best program for your exact financial situation.

Like all loan options, there are advantages and disadvantages to a 15-year mortgage. Let’s look at a few of the benefits and drawbacks.


You won’t pay nearly as much money on a 15-year mortgage as you would for a 30-year mortgage. The reason is you’ll be paying half of the interest. Let’s take a $250,000 mortgage at a 4 percent interest rate as an example. This is, of course, assuming you’d pay the same interest rate on a 30-year mortgage. The savings on interest for a 15-year mortgage would put about $70,000 more in your bank account.


You really need to have the financial means in order to afford a 15-year mortgage, because the monthly payment will be a lot higher. Take that same example of the $250,000 home at a 4 percent interest rate. With a 30-year mortgage, the monthly payment would be $1,194. With a 15-year mortgage, that jumps to $1,849.

Let Gem Home Loans Help

A Gem Home Loans expert will be happy to spell out the pros and cons of a 15-year mortgage in Sterling Heights, Michigan. Call (248) 780-1030 or use our online form to get in touch.