The 15 year fixed mortgage rates a lower than a 30 year. They can range anywhere from 1% to 1/2% lower in rate, than a 30 year fixed mortgage. A 15 year fixed mortgage will pay your home off in half the time as a 30 year loan. Apply now, you may be surprised at just how low the payment can be for a 15 year mortgage loan. What are the difference and how does it work? A 15 year fixed rate mortgage is a loan with an interest rate that does not change for the life of the loan. For example, on a $300,000 loan with a fixed interest rate of 4.50%, on a 15 year mortgage, the monthly payments will be $2,294.98. So, as long as you have that loan, the interest rate of 4.50% and monthly payment remains the same.
15 year fixed mortgage rates are lower than the traditional 30 year fixed mortgage rates. This loan works best for people who want a predictable, set deduction from their monthly income are best prepared for 15 year fixed mortgage. These are people who don't like surprises when it comes to monthly bills. Typically, if you plan to stay in the home for over 5 to 7 years and want to gain more equity faster, then the 15 year mortgage is a great plan. You don't have to worry the up and downs of the financial markets, just make your payment and rest assured that you mortgage loan balance is going down fast.
The advantages of a 15 year fixed rate are:
The disadvantages of a 15 year fixed rate loan are: