15-Year Fixed Mortgage

Who should get 15-year fixed mortgages?

People who desire a predictable, fixed deduction from their monthly budget, want a shorter loan term, and can tolerate a higher monthly payment are well-suited for 15-year fixed mortgages.

A 15 year home loan offers the security of a fixed rate program coupled with the accelerated pay down benefits of a shorter term product. Although fifteen years may sound like a long time down the road, you would be amazed at how much more of your payment gets put toward principle with this product rather than that of a 40 year home loan or 30 year fixed rate mortgage (especially at the earlier stages of the loan). Sure, your monthly payment will be higher but the amount of interest paid over the course of the loan will be significantly less.

Sample loan comparison between a 15 year fixed and a 10 year fixed rate loan:

15 Year Fixed
$100,000 Loan Amount
Note Rate: 5.50%
Monthly Principal & Interest Payment: $817.08
Total Interest Paid Over the Life of the Loan: $47,075.02

10 Year Fixed
$100,000 Loan Amount
Note Rate: 5.375%
Monthly Principal & Interest Payment: $1,079.33
Total Interest Paid Over the Life of the Loan: $29,519.16