Question:

Why take a 15 year fixed rate mortgage?

Answer:

The 15 year fixed rate mortgage is perhaps one of the most popular FRMs, or one of the most popular mortgage instruments ever, together with the 30-year fixed rate mortgage. The 15 year fixed rate mortgage is perfect for couples who would like to pay off their house before their kids start college. Other borrowers who are further in their careers may be able to make the somewhat higher monthly payment and pay off their house before they retire.

Benefits of the 15 Year Fixed Rate Mortgage

Compared to 30-year FRMs, borrowers get interest rate up to 1% lower with 15-year mortgages. Also, total interest cost (IC) with 15 year fixed rate mortgages is two and even three times less than the IC for the most conventional 30 year fixed rate mortgage.

The higher monthly payments of 15 year fixed rate mortgages allow the borrower to gain equity much quicker compared to 30 year loans.

If you are taking a 15-year fixed rate mortgage, you will be protected from inflating rates and will become a proud homeowner much quicker than with most other loans.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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