Homeowners have been using a 15-year fixed rate mortgage in order to get out of mortgage debt in a more timely manner. Commonly, homeowners have sought out a 30-year fixed mortgage due to low interest rates that have been offered as of late and the usual low monthly payment that comes with this type of home loan. However, those homeowners who can afford to do so have used the 15-year fixed mortgage seeing as how it has some benefits for certain homeowners.
A 30-year fixed mortgage usually will come with a low mortgage interest rate and monthly mortgage payment, depending on the homeowner and their financial situation. However, even with the low interest rate, a 30-year fixed rate mortgage can cost almost double the original amount of the home loan with interest and time are factored in.
A 15-year fixed rate mortgage, on the other hand, can be much more affordable and cost a homeowner less when it comes to repaying this home loan. Obviously, with a much shorter repayment lifetime a 15-year fixed rate mortgage will allow a homeowner to get out of debt faster and, as a result, avoid excessive interest charges. However, homeowners should be aware that a 15-year fixed rate mortgage often comes with a higher mortgage payment each month.
Homeowners who may be considering this is an option, or who may be looking into refinancing to this type of mortgage, are often advised to talk with their mortgage lender or in the case of someone who is refinancing, various mortgage lenders, before they proceed. A 15-year fixed rate mortgage can be more affordable over the long run, but homeowners need to make sure they are in the financial position to benefit from this type of mortgage and that they can afford the higher monthly payments that are required to get out of debt in a shorter amount of time.