15 Year Fixed Rate MortgageLast Updated : 9/20/2012
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.