Purchasing a home typically involves taking out a mortgage. When you’re looking to buy a house, you’ll be presented with multiple options. For fixed rate mortgages you’ll generally be presented with a 15-year or 30-year fixed mortgage. Which should you choose? For many people the lower 15-year fixed mortgage rates and the shorter payoff period help make the case!
The Pros of a Shorter-Term Loan
The ultimate perk of choosing a 15-year fixed mortgage is that it costs far less in the long run than a thirty-year option. The interest rate for your loan is calculated based on the number of years you’ll be borrowing, so it’s obvious that a loan taken out for half the period will cost far less. Additionally, lending agencies see these shorter-term loans as less risky due to market rate fluctuations, so they are happy to offer lower interest rates to these borrowers.
Monthly payments when repaying a 15-year loan will be higher than those of a 30-year loan, the only drawback a mortgage holder may see in taking out 15 year loan. Paying a higher monthly mortgage payment at lower interest rate results in a quicker payoff period. It should be looked at as a monthly investment in your home.
Where to Get Your Loan
If you’re looking for a lender that is honest and aggressive with their pricing, consider a company that works with lenders that have access to a vast number of institutions and programs. By applying for a mortgage on GetMoney.com your application will be forwarded to a lender that is both able and willing to go the extra mile for their clients. Another benefit of working with GetMoney.com is that they value your privacy and will not share your information to multiple lenders.
