Are you planning to have your own house free from any
debts just in time for your children to enter college? Do you want
to enjoy your retirement with a new home or simply save some money
out of your mortgage? You can easily achieve those dreams of yours
with a 15-year mortgage rates. This type of mortgage is quite enough
and sustainable rather than choosing a lengthy 30-year mortgage.
It is common for homebuyers who are going to use
mortgages in purchasing their dream house to be very concerned on
the prevailing interest rate. This includes choices of whether to
choose the fixed rate mortgage or the adjustable rate mortgage.
There is a strong relationship between the two since mortgage rates
are one of the major factors that determine the monthly payment and
how much money will be allocated for payment of home loan. Aside
from interest rates, the duration or term of the loan is another
Most consumers are thinking that it is difficult to
pay a mortgage in a span of 15-years. But such belief is sometimes
not true. Though the monthly payment for a 15-year mortgage is
higher, the interest rate is lower which offsets the increase. A
good example is when you were able to save $200 every month for the
period of 15-years and invest the amount on money market that
usually earns an interest of 4%. Your will definitely earn a lot of
money which is a great deal. You can use the savings to finance some
of your expenses. Aside from that, you also save from tax
The only issue on this case is that most people
usually could not commit to consistently save the amount straight
for 15-years with using it for other purposes. Though that is the
case, we cannot deny the fact that a 15-year mortgage has many
benefits compared to a 30-year mortgage.
Here are some of the advantages of a 15-year mortgage.
With a 15-year mortgage you can build your equity faster than with a
30-year mortgage. You will also enjoy the benefit of having your own
home in less time plus a great savings from the interests. You will
be paying for the same interest rate throughout the life of your
loan not having to worry of any effect of inflation rates. Mortgages
under this category can be applied for insurance to Federal Housing
Administration or the Veterans Administration so you will have peace
of mind should there be any untoward incidents.
A 30-year mortgage rate is ideal because of a longer
term but you might want to consider availing of the 15-year mortgage
rate especially if your type of job allows you to pay more quickly.
If you want to see the benefits in numbers, you can use some of the
mortgage calculators available on the Internet. Once you see the
actual computation, you will appreciate for yourself how big is the
benefit you can get when availing of a 15-year mortgage.