15 Year Fixed Mortgage
This is your standard 15 year, fixed interest rate mortgage loan. With the record low interest rate environment, many borrowers are looking toward these types of programs in hopes of locking in a consistent, low payment mortgage with an accelerated payment schedule that allows them to pay their home off in 15 years. The interest rate on a 15 year mortgage may be much lower than that of a 30 year term loan and you may save tens of thousands on interest over the life of the loan. There are some things to consider however before committing to the fixed rate loan.
For example, most borrowers refinance every 3-5 years or so for one reason or another.
- Interest rates may be lower than they were when they got their loan.
- Perhaps you may have kids going to college.
- Desire for home improvements.
- Need money for real estate, starting a business, or other investment.
- Decide to sell your home at some point to down size or even upgrade.
Let’s face it, a lot can happen in 15 years and all of these are real world examples that would cause someone to refinance before the home is paid off 15 years down the road. If you think you might fit into one of these scenarios, then perhaps there are other options for your home loan needs.
The 3/1 or 5/1 hybrid Adjustable Rate Mortgages (ARM) for example offer you a fixed interest rate for a period of either 3 years or 5 years respectively. Because the interest rate is only fixed for a proportion of the loan term, you may get to enjoy a low interest rate and a lower monthly payment than you could with a 15 year fixed.
However, many folks enjoy the peace of mind offered by a 15 year fixed.
It is an attractive thought to own your home free and clear after just 15 years, instead of 30 or more.
- The 15 year fixed is a very safe and secure loan with an accelerated payment plan that may get you some of the lowest interest rates available on the market, at a fixed rate too!
Get a free and accurate loan comparison and see which program makes the most sense for you, and your family today.