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Why would anyone do a 15-year fixed mortgage?

I am just not sure what the advantages are? can you please enlighten me? by Joesmorales17 from Santa Ana, California. Sep 15th 2009 Reply


Joshua Crater (Rate1st.com)
#200 ranked lender in California - 47 contributions

Why would anyone do a 15-year fixed mortgage? Well for starters, You generally pay a lower interest rate with a 15-year loan. You will pay less interest than you would with a longer-term loan and build equity quickly. But don't forget, Your payments will be higher than those on a 30-year mortgage. Typically I would recommend going with the 30 Year Fixed and just paying more than your required payment which may result in you paying off your home in less than 15 years. If you would like a customized mortgage plan that will help you better understand these options please feel free to contact me.

Sep 15th 2009
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Gene Ayzenshtat (Mortgage Expert)
#1 ranked lender in Massachusetts - 8 contributions

The rate will be lower and you will be able to pay your mortgage faster, which means you will save a lot on not paying extra interest.

Sep 16th 2009
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Brian Esquivel (currentazmortgagerates)
#26 ranked lender in Arizona - 67 contributions

There are several reasons why a 15 year fixed mortgage might be right for you. If you are within 15 years of retirement and you opted for a 15 year fixed loan your home would be paid off upon retirement and you wouldn't have that large expense to pay monthly on a fixed income. You would have more discretionary income available to enjoy your retirement.Another great reason is that you would save thousands of dollars in interest in comparison to a 30 year loan. A possible downside to this would be that you would be obligated to pay the higher 15 year payment every month. If you were to choose a 30 year fixed loan you would have a lower monthly payment and have the option to add more money to your principle when the time is right at your convenience.

Sep 16th 2009
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