15-YEAR FIXED MORTGAGE
What is a 15-year Fixed Mortgage?
A 15-year fixed rate mortgage is a great option to minimize your total borrowing costs. Like a 30-year fixed mortgage, you pay monthly payments spread out over a period of time, but in this case it is over 15 years rather than 30, so you pay off your loan twice as fast! This means less overall interest, which can save you thousands of dollars over the life of the loan. The monthly payments are higher than a 30-year loan, but you make half as many mortgage payments. This loan option could mean less interest, lower rates, and you can pay off your loan in half the time!
BENEFITS OF A 15-YEAR FIXED MORTGAGE
- Interest rate is fixed for the life of the loan
- Pay off your loan in half the time of a 30-year mortgage
- Lower rates and down payments as low as 3% - 5%
- No prepayment penalties
- Consistent monthly mortgage payments
- Can avoid Private Mortgage Insurance (PMI) with a minimum of 20% down
- Build equity faster than a 30-year fixed mortgage
How it Works
A 15-year mortgage can be utilized for both the purchase of a new home, or the refinance of your current home. You will have a set, fixed interest rate for the entire life of the loan, and will have consistent mortgage payments every month. The amount paid monthly to the loan will not change, however keep in mind that the amount you pay for property taxes and homeowners insurance is still subject to change. After the 15-year loan term, the home will be completely paid off. You also have the ability to pay more towards your mortgage whenever you would like, allowing you to pay off the loan even faster than 15 years, with no prepayment penalties!
Reasons to consider a 15-Year Fixed Mortgage
- To pay off your home sooner
- To own your home completely before retirement
- Lower interest rate
- Pay less interest throughout the life of your loan
- Consistent monthly mortgage payments with no surprises
Not every loan option is right for every borrower. To get your questions answered and receive more information on what type of loan is best for you, contact us at 1-888-320-9343 or click the button below and allow us to help find a customized loan to fit your specific needs.