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Two of the most popular mortgage loans on the market are the 30 and 15 year fixed rate mortgage. Both products can be beneficial in a number of different scenarios. If you are in the market for a house, you will want to consider the benefits that both types of mortgages can present you.
15 Year Fixed Rate
With a 15 year fixed rate mortgage, you can pay your house off much faster. You are only making mortgage payments for half the time with a 15 year mortgage. Your interest rate is also going to be lower and your overall interest savings will be much less.
30 Year Fixed Rate
With a 30 year fixed rate mortgage, you will be paying for your house significantly longer. The major benefit of this type of mortgage is that it gives you a much more manageable monthly payment. Depending on how big your mortgage is, the payment for a 30 year fixed rate mortgage is going to be hundreds of dollars less in most cases.
Having a cheaper payment will give you the flexibility that you need on a monthly basis in case unexpected expenses come up. You will pay more over the life of the loan, but it is more affordable on a monthly basis.
