Many people that are looking to get out of mortgage debt faster and for less money over the life of their home loan, may want to consider a 15 year fixed-rate mortgage. The common 30 year fixed-rate mortgage comes with a low interest rate and often comes with a low monthly mortgage payment as well, for some, and this makes it a popular choice for many homeowners.
However, the 15 year fixed-rate mortgage comes with a much lower interest rate and with a shorter timeframe a homeowner stands to save money over the life of the mortgage as they repay their home loan. The 30 year fixed-rate mortgage, while coming with a lower mortgage rate and payment, in many cases, will often cost almost double the original mortgage value.
One drawback that keeps many homeowners from choosing the 15 year fixed-rate mortgage is the cost of the monthly mortgage payment associated with this home loan is typically higher than with the 30 year fixed-rate mortgage or some adjustable-rate mortgages.
Yet, anyone who is able to afford the monthly payment and wishes to save money on their home loan and get out of mortgage debt faster may benefit from this 15 year fixed-rate mortgage option.
It should be noted however, entering into a mortgage or refinancing a home in the hopes of getting a 15 year fixed-rate mortgage is not something that should be done lightly. A mortgage obligation is a very big responsibility so anyone who may be looking at getting a 15 year fixed-rate mortgage should look at their personal financial situation and make sure they are in a good position to afford this type of mortgage.