What is a 15-Year Fixed-Rate Mortgage?
Fewer homeowners choose a 15-year fixed-rate mortgage, but they are an available option and share many characteristics in common with their more-popular 30-year cousins.
For instance, the fixed-rate status means the interest rate and the size of the monthly payment does not change for the entire loan term.
Additionally, the loan is amortized across the entire term, meaning with the very last payment at the end of the loan term, the entire principal balance is paid off with nothing more owing.
The big difference is the 15-year term and 15-year amortization schedule. This means that the payments, while fixed and unchanging are significantly higher. This makes the payments harder for many households to afford… but for the households that can afford them, they are able to pay off their loan and own their home free and clear much sooner.
15-year fixed-rate mortgages may be a great choice for households with high income looking for their forever home, which they can pay off quickly and then enjoy mortgage-free. Households whose personal financial or savings goals involve being debt-free should also consider this loan.
Choosing the right loan that matches your needs and getting the best rate for your specific situation can be a stressful and overwhelming process. We're here to help you go through the entire loan process in the smoothest way possible. Let's start with a FREE 15-Year Loan Quote.
