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15 year mortgage is a typical fixed-rate mortgage that is fully paid off after 15 years. It’s one of the available mortgage loan options meant for borrowers. You don’t just apply for the loan without knowing its basic features, benefits and of course the drawbacks. It’s also important you make proper inquiries about the 15 year mortgage rates. Benefits 15 year mortgage can be very beneficial in diverse ways. Here are some points to note: The 15 year mortgage rates are simply fixed. They don’t adjust upwards or downwards. The loan simply amortizes after 15 years. You spend less on interest when you go for the 15 year mortgage. You’ll be paying lesser interest all through the 15 years. This is because, the interest charges are racked up on the principal for a few number of years. When compared to 30 year mortgage, you’ll still be paying less interest if you go for the 15 year mortgage. You’ll only have fewer worries as you retire when you have the 15 year mortgage. In most cases, the 15 year term allows you to retire your mortgage when you also retire yourself. Hence, you wouldn’t need to worry about covering your mortgage payments with all your social security checks. You can easily build up equity faster when you go for the 15 year mortgage. In most cases, you’ll be making bigger payments each month. By so doing, you’ll be paying down your loan and also gain more ownership of your home at a speedy rate. The Drawbacks Despite the benefits, 15 year mortgage also has some drawbacks. Here are some of them. The 15 year mortgage attracts higher monthly payments. You have to be ready to afford this when you go for the loan. If you happen to lose your job or your ability to work, the equity in your home may come down. This is why many lenders want to see proofs of your income flow before they can offer you any kind of loan. It may be tough to refinance into a lower-payment and if the house market drops, it may be difficult to sell the home. However, you can protect yourself from this by building enough savings which you can easily have access to. You need to save enough for your retirement even as you go for the 15 year mortgage. In any case the 15 year mortgage rates are simply fixed. You don’t need to worry about possible rate fluctuations when you go for the 15 year mortgage. However, you need to discover whether the loan type is actually good for you or not. The best you can do is to make proper inquiries. You have to use a good mortgage calculator to determine how much you mortgage you can afford. You should also maintain an excellent or good credit score in order to have access to the loan. If you’re also confused about the whole process, you need to go for further assistance through a reliable mortgage expert or broker. 30 Year Fixed Mortgage, 15 Year Mortgage Rates
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