15 year fixed-rate mortgages enable you to pay off the mortgage loan in half the amount of time. Unlike a longer-term loan, the 15 year fixed-rate mortgage cuts your amortization schedule in half. This allows you to pay off the loan in exactly 15 years by making the principal and interest mortgage payment. As with other fixed-rate mortgages, you are free to make any payment above and beyond your schedule principal and interest mortgage payment. In fact doing so, will allow you to pay off the loan under the scheduled term. The 15 year fixed-rate mortgage has some tighter loan qualifying restrictions, but otherwise puts you on the path to becoming mortgage free sooner.
15 Year Fixed Rate Mortgage Benefits:
- Can you handle a higher mortgage payment knowing that you will be mortgage free in half the amount of time?
- Do you plan to keep your home forever?
- Do you like the idea of having a fixed rate mortgage for a short period of time?
Then consider a 15 year fixed rate mortgage. 15 year fixed rate mortgages are amortized over a 180 month term and allow you to radically reduce mortgage interest expense. The main benefit of a 15 year fixed rate mortgage is that the mortgage is significantly less costly than its longer-term counterparts. Learn why the 15 year fixed rates are the lowest in US history.
15 Year Fixed Rate Mortgage Highlights:
- Purchase at home with as little as 3.5% down
- Refinance up to 95% of the value of your home
- Lowest fixed rates available in the marketplace
- Loan amounts from $50,000-$2 million
- Amortization schedule cut in half
How 15 Year Fixed Rate Mortgages Work:
- Monthly mortgage payment is based on principal and interest and amortized over the life of the loan, 180 months
- Monthly mortgage payment is higher because the loan is being paid off in half the amount of time
- Mortgage payment remains the exact same for the 180 month term
- No prepayment penalty
- No restrictions on making extra principal payment reductions
If you despise debt and want to reduce the amount of of interest you’ll pay when securing a mortgage loan, the 15 year fixed-rate mortgage is a good choice. We advocate before taking out the 15 year fixed-rate mortgage, consider the higher monthly payment you’ll be obligated to make. You can always make a 15 year mortgage payment on a longer term loan.
Start by getting qualified for a 15 year mortgage loan today. Find a 15 year mortgage rate quote for your purchase or refinance loan scenario. There is no obligation and mortgage rates are quite low. Getting a 15 year fixed-rate mortgage will help you become debt free sooner.