Comparing a 30 and 15 year Fixed Rate Mortgage

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. 

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