Many people are often looking for ways to get out of mortgage debt faster as a mortgage is, in the majority of people’s lives, the biggest source of financial obligation they have. It also stands to reason that any homeowner is going to want to own their home outright and not spend years and years paying on a mortgage. While there are various types of mortgages, a 15-year fixed rate mortgage is one that can help you not only get out of mortgage debt faster, but also cheaper as well.
A 15-year fixed rate mortgage has many benefits over the common 30-year fixed rate mortgage, but a homeowner will need to take the time to compare these two mortgages and view them in light of their personal financial situation before they choose which route to take. A 30-year fixed rate mortgage comes, depending upon the homeowner’s home equity and credit score, with a low mortgage rate and oftentimes a low mortgage payment. Homeowners that have been struggling to make their mortgage payments have been refinancing to this type of home loan for the lower monthly payment they may receive.
The alternate, a 15-year fixed rate mortgage, usually comes with a lower interest rate and with a shorter repayment timeframe and this type of mortgage will typically cost less money over the long run. A 30-year fixed mortgage is going to cost, at times, almost double the original amount of your home loans when interest is factored in. The 15-year mortgage will cost much less as the repayment timeframe is shorter and the interest is lower.
One drawback of the 15-year fixed is that there is a higher monthly mortgage payment than on the 30-year fixed rate mortgage. While it may be costlier month-to-month to pay for this mortgage, the 15-year fixed, again, will save you money over the entire life of the home loan. It must be remembered though, before you buy a home or refinance you need to make sure that you’re in a financially stable position that would allow you to afford the costs of doing so.