What is a 15 year fixed rate mortgage?
The 15 year fixed rate mortgage is one a handful of conventional mortgage types within the industry. The other types are the 10 year fixed, 20 year fixed and 30 year fixed rate mortgage. The term “conventional” means that the mortgage loan conforms to guidelines from the financial institution and with regards to the size of the loan.
The 15 year “Fixed rate” mortgage comes with interest rates that are lower than that of 30 year fixed loans and won’t change throughout the life of the loan; so your monthly payment will remain the same.
15 Year Fixed Benefits
- A 15 year fixed mortgage allows you to pay thousands less in interest over the course of a loan.
- The term “Fixed” means that your interest rate will never change for the entirety of the loan. Giving you a consistent payment each month.
- It’s 15 years, so you can pay off your mortgage faster.
15 Year Fixed VS 30 Year Fixed
- The obvious difference: The 15 year fixed is paid off in 15 years compared to 30