Generally speaking, when buying a home, a consumer will benefit from choosing a loan for the shortest amount of time possible. This means there is less time for the loan’s interest to apply, which saves you money. When it comes to 15-year fixed mortgage interest rates, there are several good things about selecting this type of loan. It offers the lowest commonly used loan term (15-years), and it provides an opportunity for individuals to lock in the same rate for that entire span of time. That leads to cost savings and stability.
Are These Rates Higher?
When comparing 15-year fixed mortgage interest rates, it pays to have a solid number of quotes from multiple lenders to determine which can offer the most affordable loan terms. Overall, 15-year interest rates will be about the same as a 30-year loan term. However, some lenders will offer a lower interest rate on this shorter-term loan because it means less risk to them. However, even if this rate is higher than the 30-year loan, it will likely lead to lower costs overall for purchasing a longer-term loan.
However, home buyers need to take into consideration whether or not they can afford this type of loan. Because the loan is only half of the timeframe, the monthly payment here will be more than the 30-year term. This means it will cost more initially to buy the home in terms of monthly payments.
Still, all buyers should take a look at 15-year fixed mortgage interest rates. This may be one of the more affordable ways for individuals to obtain a low-cost mortgage for their specific needs. It may provide an opportunity to pay off the loan sooner.
Finding the best 15-year fixed mortgage interest rates is not easy, go to Guaranteed Rate for help.
