15 Year Fixed Rate Mortgages
Maximum Lending’s 15-year fixed-rate mortgage gives home buyers the opportunity to save a considerable amount of money on the total interest paid over the duration of the loan compared to a 30-year fixed-rate mortgage. This loan option also allows homeowners to build equity much faster than a 30-year fixed-rate. One of the most attractive advantages to a 15-year fixed-rate is that there is no fear of “payment shock”; the loan’s interest rate and payment will always remain the same.
What Are the Benefits of a 15-Year Fixed-Rate Mortgage?
The 15-year fixed-rate mortgage is perfect for first-time home buyers, move-up home buyers, and anyone who’s looking to refinance their existing mortgage. This mortgage option is available as a conventional, FHA, and VA loan. With a 15-year fixed-rate homeowners can enjoy benefits such as:
Interest Rates: A 15-year fixed-rate will accrue less interest than a 30-year fixed-rate mortgage simply because you’ll be paying the loan in half the time. This will save you a considerable amount of money on the total interest paid over the loan’s duration.
Monthly Payments: A 15-year fixed-rate allows you increased peace-of-mind knowing your mortgage payments will never increase over the duration of the loan. It is, however, important to note that your payments will be higher than 30-year fixed-rate payments.
Building Equity: The faster you pay off your mortgage, the quicker you build equity. High equity may allow you to refinance your home in order to take out a home equity line of credit, make home improvements, or buy your vacation home.
Planning for Your Future: If you want your home paid off before you begin paying college tuition, or you’re entertaining the idea of early retirement, a 15-year fixed-rate mortgage might be the choice for you.
How Does a 15-Year Fixed-Rate Mortgage Compare to a 30-Year Fixed-Rate Mortgage?
Other than the length of the loan, a 15-year fixed-rate mortgage comes with lower interest rates, and lower total interest paid over the life of the loan. Homeowners, however, can expect their monthly payments to be significantly higher than a 30-year fixed-rate because the time is cut in half. A 30-year fixed-rate mortgage offers lower, more affordable monthly payments, but you’ll end up paying more in interest. Use our mortgage calculator to compare both mortgage options.