15 Year Fixed Mortgage Rates: The Benefits

2007-03-08 10:33:40

( Financial )



The 15 year fixed mortgage rates for a typical home loan is popular with a lot of people. One of the factors that have contributed to its popularity is the low interest rate when you purchase or refinance your home. So if you are going to buy a new home or just thinking of refinancing your existing mortgage, you may want to look at the 15 year fixed mortgage rates.

Getting 15 year fixed mortgage rates are popular because it provides stability and predictability in your monthly payments toward your mortgage for a long period of time. Mortgage rates once locked in cannot be changed. This means you pay the same amount monthly for 15 years. This can help you make your household budget and you do not have to worry about the fluctuating rates because it will not affect your loan. If you are on a fixed monthly income and you pare planning to live in your house for an extended period of time, a 15 year fixed mortgage may be the best option for you.

15 year fixed mortgage rates are often lower than a 30 year mortgage. Your monthly payments may be lower with a 30-year mortgage, but you will also have a higher interest rate compared to a 15 year mortgage. If you look at the big picture, homeowners who opt for a 15 year mortgage save a lot more than those who choose to 30 years because they will pay less interest. The potential amount of savings when taking out a 15-year mortgage is significant.

If you are also delaying your decision in refinancing or taking out a new mortgage because you think the rates are going to be lower is a couple of years, you may be waiting in vain. The government is slowly increasing interest rates annually so lower rates in the next few years may not be possible.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.