For those who want to pay off the note on their homes quicker, 15-year fixed mortgage loans provide you with the opportunity to do so. Most mortgages come with a 30-year lifespan, but this means that you’ll be tied up paying it off for the majority of your life. Those who go with a fixed-rate mortgage are able to lock in the interest that’s charged for a certain amount of time.
How exactly does a 15-year fixed mortgage work?
Basically, you ask the lender for the amount you need to purchase a home, and they’ll do their homework to find out whether you’re a good candidate. From there, they will come up with a payment plan spread out over a period of 15 years. Since they’re willing to keep the interest rates the same over the years of your mortgage, you’ll also save.
In the event that you don’t pay your home off, they will foreclose on you. You will also be at risk of losing any benefits that they provided you with initially.
Does one truly benefit from 15-year fixed mortgage loans?
This is a question that many people ask because it does come with higher monthly payments than a mortgage on a 30-year note would come with. So let’s take a deeper look into things.
· Embrace the opportunity to plan yourself for financial success.
Whether that involves taking advantage of the opportunity to see the value of your home grow so that you can sell it at a higher price than you paid for it initially, or that means you’ll use the financial predictability to your advantage, this is a great way to do so.
· Discover the opportunity to embrace a government-sponsored lender.
Fannie Mae comes to mind when we talk about government-sponsored lenders. They do charge more on 30-year mortgages, but you can save on these fees by taking on a 15-year mortgage.
· You’ll have 15 years to pay off your note, and the interest stays the same.
That means you’ll end up paying your house off a lot quicker than most. Without risking the market taking you for an unenjoyable ride of higher interest. Know what you’re going to pay and pay it off quickly. It’s as simple as that.
If you want to pay your home off quickly while embracing an interest rate that doesn’t change as the market changes, 15 year fixed mortgage loans may be the route that you want to go.