15 Year Fixed Rate Mortgage

The most common mortgage type is the fixed rate mortgage.  Your monthly payment, including both principle and interest, doesn’t change over the life of the loan.  With a 15 year fixed rate mortgage, you can pay off your home purchase twice as fast as with a standard conventional mortgage.  This is the main benefit of a 15 year loan.

Interest is paid over the full term of the mortgage.  The longer your mortgage remains outstanding, the more total interest you’ll have to pay.  A 15 year fixed rate mortgage will likely save you thousands of dollars.

You won’t save as much money in tax deductions over the course of your loan as you would with a longer mortgage.  More of your income will ultimately go to paying off taxes than with a longer mortgage.  You’ll need to weigh the benefits of a 15 year mortgage and the money you’ll save in total interest against the downsides and the costs incurred from losing access to the mortgage interest income tax deduction.  Connect with a local lender to determine whether a 15 year fixed rate mortgage is right for you.

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