Homeowners looking to save money on their mortgage over the life of their home loan may want to consider a 15-year fixed rate mortgage. With a lower interest rate and shorter life on the loan, a 15-year fixed rate mortgage can not only save a homeowner on interest over the long run, but there is, obviously a shorter life to the debt, meaning a homeowner gets out of mortgage debt faster.
Many people typically opt for a 30-year fixed rate mortgage due to the lower monthly payment, but over the life of a 30-year mortgage a homeowner can pay almost double the value of the original home loan because of interest.
However, many people don’t choose a 15-year fixed rate mortgage due to the higher monthly payment that is required. Obviously, the shorter the term of a mortgage the higher the monthly payment will be, since the home loan has fewer months than a 30-year mortgage for instance.
People understand this point but fail to realize they will be paying fewer months of interest as well. If you are a homeowner that wants to pay less for your mortgage over the long run, and can afford the higher payment associated with a low interest 15-year fixed rate mortgage, you may want to look at your options and see if it is a good choice for you.