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15 Year Fixed-Rate Mortgage

What is 15-Year Fixed Rate Mortgage? Mortgages can be financed in many different terms (length of the note). For fixed rate mortgages, 10-year, 15-year and 30-year terms are the most common. If you have a 10-year note, your loan will be paid off in 10 years. You will pay an equal monthly payment which will include principal and interest. If you have a 15-year note, then it will take 15 years to payoff and a 30-year note takes 30 years to payoff. Apply Now for a 15 Year Mortgage!

What's the advantage to a 15-year term? The main advantage to choosing a 15-year mortgage term is cost. Your interest rate is typically lower than 30 year note. The real savings though is not the slight savings in rate, but rather the fewer number of years your interest will be compounding. Apply Now for a 15 Year Mortgage!

What's the downside to a 15 year mortgage? The only real downside to a 15-year mortgage term is the payment amount. Since you're paying a loan off in fewer years, the mortgage payment will be significantly higher than the 30 year mortgage term. If you can afford to pay it, then it's a no-brainer. You should go with the shortest term possible. If you can't afford the higher payment, or you fear the in the future you might not be able to pay it, then you should consider a 30 year fixed or possibly an adjustable rate mortgage. Apply Now for a 15 Year Mortgage!

Mortgage Best Practice
Since the differences in interest rates between a 10, 15 and 30 year fixed rate mortgage is minimal, there is another option that gives the borrower the flexibility of a 30-year mortgage payment, while maintaining the ability to payoff the loan in 10-15 years.

Finance your home with a 30 year mortgage, but make payment amounts based on paying the home off in 10 years. For example, when you close the loan, ask your lender to give you amortization schedules for 10, 15, 20 and 30 years. Then make payments based on a 10 year note when you can. If you can keep these payments up, you will payoff your loan in 10 years and save thousands in interest expense. The great news is that if times get tough and you can't afford to make the payment, you have the flexibility of dropping your payment back to the 30 year payment. Lenders allow this practice, although they do not advertise it since they make their money off the interest. Apply Now for a 15 Year Mortgage!