15 Year Mortgage
15 Year Mortgage
A 15 year mortgage loan is a home or mortgage loan that can be paid off in 15 years. Most current or potential homeowners will want to explore a 15 year mortgage loan when interest rates are low or when they are looking to pay off their home or mortgage loan faster. A 15 year mortgage loan can be set up to have the same interest rate and the same monthly payment for the entire length of the loan. A 15 year mortgage loan is a popular choice amongst current or potential homeowners who are trying to decide whether or not they want to refinance their mortgage or loan.
A 15 year mortgage loan has some advantages and disadvantages. When we are looking at the advantages for a 15 year mortgage loan, there are two main advantages to why borrowers would want to obtain a 15 year mortgage loan. The first main advantage is that most individuals that apply for a 15 year mortgage loan, like knowing what their principal and interest payments will be monthly and throughout the length of the loan. The second main advantage is a 15 year mortgage loan allows homeowners to repay their mortgage loan faster and therefore building the equity in their home quicker than if their loan was for a longer period of time. Now lets mention a couple of disadvantages to a 15 year mortgage loan, some homeowners don’t like having the fixed rate loans because some borrowers may not be able to take advantage of the lower interest rates without having to pay the expensive refinance costs that go along with having a 15 year mortgage loan drawn up. One other disadvantage to a 15 year mortgage loan is that the borrower’s loan payments are higher than they would be with a longer loan term. Ultimately, it is the homeowners that are interested in owning their home outright as soon as they can are the ones that will choose a 15 year mortgage loan. Potential homeowners or potential borrowers will want to contact a local real estate specialist in their area to find out what are the best options when it comes to owning a home.