Mortgage debt is one of the most costly forms of debt that anyone will accrue during their life. While a home is necessary, many people are often looking for ways in which they can pay off their mortgage in a timely manner so that they can own their home outright. Since a mortgage is usually one of the most expensive things someone will be making payments towards, it’s no surprise that many people want their home paid off as quickly as possible.
There are a few ways in which homeowners can make their mortgage more affordable and pay their mortgage faster. Typically, people will get a 30-year fixed rate mortgage so that they can get a low mortgage interest rates and lower monthly mortgage payments. This can be beneficial for anyone who is unable to pay a higher mortgage payment, but homeowners with this type of mortgage usually pay almost double what they would with another mortgage.
One way to make a mortgage more affordable and get out of mortgage debt faster is by getting a 15-year fixed rate mortgage. This home loan is often more affordable, meaning it has a lower mortgage rate and with the shorter timeframe for repayment a homeowner usually pays much less over the entirety of their mortgage.
However, many people do not choose this option because it comes with a higher monthly mortgage payment. Since the mortgage term is much shorter it’s obvious that a homeowner will have to pay more month-to-month so they can get their home paid off within the 15 year payment period.
Some homeowners that may be able to afford a higher monthly mortgage payment, and keep in mind this payment may be dependent upon a number of factors and will not be the same for everyone, may benefit from this type of home loan. The best way to find out if a 15-year fixed rate mortgage is going to be in your best interest is to talk to your mortgage lender and look at your personal financial situation.