Benefits of Choosing a 15-Year Fixed Mortgage

by | Jan 29, 2018 | Finance

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If you are planning on purchasing a home, you may find a 15-year fixed mortgage is the best option for your needs. However, this is only the case if you can afford higher payments each month, and want to reduce the amount of time you will have your mortgage.

To learn more about whether or not this mortgage option is right for you, consider the benefits it offers here.

A Faster Road to Owning Your Home

Perhaps the biggest benefit of choosing a 15-year fixed mortgage is that it will help you own your home faster. The majority of people choose a 30-year mortgage because the payments are more affordable. However, if you can afford it, then a 15-year loan makes sense.

Build Your Equity Faster

With this type of mortgage, you will have a much lower interest rate. However, it is important to understand that with the reduced interest rate, your payments are going to go up. While this may be problematic for some, it also means that you will build the equity in your home faster, because you will be paying down the balance in a timelier manner.

Save Money

Because a lender will have fewer years of risk with a mortgage for only 15-years, they are willing to give borrowers a much lower interest rate. This may result in a huge amount of money savings in the long run. Also, this mortgage is more affordable because you are only going to be paying the interest for half the amount of time you would with a 30-year mortgage.

If you are thinking about buying a home, then you should consider the benefits offered by a 15-year fixed mortgage. More information about this loan can be found by visiting the website.

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