Many homeowners looking to pay off their mortgage in a timely manner with little cost incurred from interest may want to look into a 15-year fixed rate mortgage. While homeowners have been looking for low interest rates on home loans and refinancing, it should be known that a 15-year fixed rate mortgage comes with a lower interest rate than most other mortgages.
Also, the shorter life in the loan for a 15-year fixed rate mortgage is attracting many homeowners as well. Paying for 30 years on the common 30-year fixed rate mortgage costs much more in interest over the life of the loan, but homeowners with a 15-year fixed rate mortgage save more money.
One drawback that keeps many people away from the 15-year fixed rate mortgage is the monthly mortgage payment. While interest on the 15-year fixed mortgage is low and the interest saved over the life of the mortgage can be substantial, there is a higher monthly mortgage payment for homeowners that choose this mortgage.
However, if you are in the financial position to pay the higher monthly payment you are going to save yourself a lot of interest by getting a 15-year fixed rate mortgage. Be sure, though that you are able to afford the costs and responsibility associated with buying a home and make certain doing so is right for you.