The first benefit is that you will be pay interest for 15 years rather than 30 and that will save you a lot of money. The second benefit is that a 15 year mortgage has a lower rate than a 30 year so you will also save money on that. You will own your house much sooner using the 15 year mortgage and that is also a benefit.
Nice job, Thomas. Let’s recap. The 15 year fixed rate mortgage provides a lower interest rate, much lower amount of interest paid on the loan, and a psychological boost in knowing the home will be paid off in 15 years. It also provides a locked in payment that will not change over the length of the loan.
When buying that home of your dreams, focus your efforts on keeping your payment under 30% of your gross income, put 20% down and utilize the 15 year fixed rate loan if at all possible. Your financial future will thank you.
The first benefit is that you will be pay interest for 15 years rather than 30 and that will save you a lot of money. The second benefit is that a 15 year mortgage has a lower rate than a 30 year so you will also save money on that. You will own your house much sooner using the 15 year mortgage and that is also a benefit.
Nice job, Thomas. Let’s recap. The 15 year fixed rate mortgage provides a lower interest rate, much lower amount of interest paid on the loan, and a psychological boost in knowing the home will be paid off in 15 years. It also provides a locked in payment that will not change over the length of the loan.
When buying that home of your dreams, focus your efforts on keeping your payment under 30% of your gross income, put 20% down and utilize the 15 year fixed rate loan if at all possible. Your financial future will thank you.