15-Year Fixed-Rate Mortgage

Benefits of a 15-year Fixed Rate Mortgage

In a low-interest rate environment, a 15-year fixed-rate mortgage can be a great option to accelerate the paying off or paying down of your mortgage. Here are a few of the key reasons you might consider this loan option:

• If you plan to stay in your home for several more years
• If you like the peace of mind of a consistent monthly mortgage payment
• If you can get a slight bump in monthly payment, but gain a much lower interest rate, save thousands in interest expense and remove years of mortgage payments

The 15-year fixed-rate mortgage is not a super popular loan option, but it’s a favorite of many financially savvy customers that are looking to pay off their home.

Do It Yourself Mortgage Analysis

• Try Our Mortgage Calculators
• Get Real Numbers with Our Velocity Application

Review the Different Types of Loans

• 30-year Fixed Rate Loan
• FHA Loan
• VA Loan
• 15-year Fixed Rate Loan
• Jumbo Loan
• Adjustable Rate Loan

Questions We Get About 15-year Mortgages

• How do mortgage rates work? – Interest rates go up and down, but why? Many assume that mortgage rates are set by each lender somewhat arbitrarily. The fact of the matter is that these rates are market driven and actually rates tend not to vary significantly from one lender to the next. 
• What will my closing costs be and what am I paying for? – Closing costs are largely comprised of fees associated with assessing the value of your home, preparing your title and deed, recording your ownership of the home, and prepaying your homeowner’s insurance and property taxes.
• Am I ready to buy a home? – This is probably the most important question you should be asking yourself before you consider a mortgage. Chances are you’re already paying for housing (rent) from month to month so this question often comes down to your ability to make a downpayment and have reasonable financial reserves.
• How much house can I afford? – This is a question that is typically easier to answer than people think. What do you currently pay for housing? Is that monthly payment just right or does your budget give you a little room to increase that payment? Typically, we recommend that your housing expense not be greater than 30% of your income and your total monthly debt not exceed 45% of your monthly income.
• Can I get a mortgage if I am self-employed? – Absolutely! Really it’s not much different than qualifying for a mortgage as a W-2 employee. Then only difference is that the documents you provide will be a little different.