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15 Year Fixed Rate Mortgage

You may know that you will be able to get a 30 year fixed rate mortgage. But do you know that you can actually get a 15 year fixed rate mortgage as well? Many people do not know this and end up regretting their longer mortgage. You must weigh all your options before you make that important mortgage decision. Because of that you should read the following. These are some advantages and disadvantages of a 15 year fixed rate mortgage. Hopefully they truly help you make an informed decision.

Advantages of a 15 Year Fixed Rate

  • As with any fixed rate you will be locked into an interest rate. You do not have to worry about any changes in an interest rate.
  • You have the ability to build equity much quicker then someone who has a 30 year fixed rate.
  • When you have a shorter mortgage, you will be paying much lower interest bills then on a longer mortgage. Sometimes these interest bills can be much lower.
  • You are locked into a mortgage for half the length of time then a 30 year. It will end much quicker, and you can get on with your financial life.

Disadvantages of a 15 Year Fixed Rate

  • Because of shorter length of time, you will have monthly payments that arte quite higher then those payments on a 30 year fixed rate loan.
  • You may have to choose a house that is a bit smaller in order to be able to pay off those payments on a 15 year fixed.
  • Because of the short length of time you must make extra sure that you do not fall behind.

There you have it! These are the key advantages and disadvantages of a 15 year fixed rate mortgage. Remember; do not let anyone tell you what to choose when dealing with a mortgage. It is your choice, so you make the decision. Just get all the key information in order to make the best decision.

Additional Resources:

National Rate Averages

Mortgage Rates

Product Rate
5/1 yr ARM 3.147%
1 yr ARM 3.299%
15 yr fixed 3.221%
30 yr fixed 3.815%

Home Equity Rates

* Updated Jun 7, 2012