One way to get out of mortgage debt faster is to choose a 15-year fixed rate mortgage, rather than the common 30-year fixed rate mortgage. While this is not the only way to alleviate your mortgage debt in a timely manner, there are benefits to the 15-year mortgage that outweigh some other home loan options.
The 15-year fixed rate mortgage often comes with a lower interest rate than other mortgages, like the 30-year mortgage, and this lower interest rate is going to save a homeowner more money over time. Obviously, this shorter repayment timeframe is going to also keep a homeowner from paying more money than if they had a 30-year fixed rate mortgage, as a 30-year mortgage can sometimes cost a homeowner almost double their original home loan amount.
One reason many people don’t choose the 15-year mortgage is because it does come with a higher monthly mortgage payment. With a shorter life span on this home loan, it goes without saying, that payments have to be higher in order to pay off the balance of your mortgage with the15 years.
However, the savings the homeowner can take advantage of with this type of mortgage are going to outweigh the downside, being the higher monthly payment, so homeowners that can afford the monthly payment that comes with this 15-year fixed rate mortgage may benefit from choosing this option.
Anyone who may be considering choosing a 15-year fixed rate mortgage or refinancing needs to make sure they are in a firm and stable financial state so that they can afford the costs that come with home ownership. While the 15-year mortgage can be cheaper over the long run, a homeowner must make sure they can make the payments on this home loan before moving forward.