There are many homeowners who want to get out of mortgage debt as quickly as possible, which is probably applicable for the vast majority of homeowners, and they may be able to do so with a 15-year fixed rate mortgage. A 15-year fixed rate mortgage is often overlooked by many homeowners, despite the fact that it has a shorter repayment term and a lower interest rate than the common 30-year fixed rate mortgage.
Many homeowners choose the 30-year mortgage because it comes with a lower monthly mortgage payment and usually, depending upon the homeowner, a low interest rate. Homeowners that have been struggling to make their mortgage payment have been seeking out ways to make their home loan payment cheaper and for many the 30-year fixed rate mortgage is one way of doing just that.
However, the 15-year fixed-rate mortgage, obviously, takes half the time to pay than the 30-year mortgage and, again depending upon the homeowner, can come with a much lower interest rate than many other home loans. Also, the 30-year fixed rate mortgage sometimes will force the homeowner to pay almost double what they originally borrowed for their home.
One big drawback to the 15-year fixed rate mortgage is that homeowners have to pay a higher monthly mortgage payment. Obviously, anyone who may not be able to make the current monthly mortgage payment or who may be stretching their finances to do so might not be able to afford this higher payment.
Yet, homeowners who may be able to afford a slightly higher mortgage payment will be able to save a great deal of money over the entirety of their mortgage life if they choose a 15-year fixed rate mortgage. Keep in mind though, a 15-year fixed-rate mortgage is not a guarantee for a lower cost over the life of a home loan. Interest rates and monthly payments will depend upon a homeowner’s credit score and, if a homeowner is refinancing, the amount of equity in their home.
Talking over options with a mortgage lender is probably the best way to see if a 15-year fixed rate mortgage is going to be the best bet for you. Many people advise homeowners to talk to different lenders in order to see what types of offers they can get, as well as, see if in their current financial situation a 15-year fixed rate mortgage will be a good option.