15-year Fixed Rate Mortgages
If you can afford to do so, a 15-year fixed rate mortgage is a great alternative to a 30-year mortgage. Interest rates for a 15-year program are lower than 30-year programs. Over the life of your loan you have the potential to save thousands of dollars by choosing a shorter term mortgage.
Your amortization schedule is the schedule for how you pay back your mortgage loan. When it comes to choosing the term of your home loan there are two rules of thumb. First off, the lower your mortgage interest rate the less interest you will pay monthly. Second, the shorter your mortgage term the less interest you will pay total. According to Chris Ulrich, a senior mortgage banker with United Home Loans, “A 15-year fixed mortgage isn’t just a great way build equity fast, but it’s also a way to save a tremendous amount of money. For example, not only is the interest rate on a 15-year fixed roughly a full percent lower than a 30 year fixed, but on a $250,000 mortgage, the savings when compared to a 30-year fixed is nearly $135,000 over the life of the loan. While a 15-year fixed isn’t right for everybody, there are several products tailored to meet the needs and financial goals of just about anyone obtaining financing. That is why it is important to discuss your current and future financial goals with a seasoned mortgage professional so they can provide you with multiple options that best suits you.”
If you’re currently looking for a home and think you may qualify for a 15-year fixed rate mortgage, it will be worth your while to look into it. Contact us below or call 708-531-8388 to see how much you can save.