The 15-year, fixed-rate mortgage can appeal to many people. There are two groups in particular, however, that this mortgage type may appeal to more. Older homebuyers, who are settled in their careers with higher incomes, are first. These are people who plan on paying off the home before retirement. Young homebuyers, who have substantial income and wish to make higher payments and pay off the home before paying for their children’s tuition, are second. So what makes this mortgage type so appealing to these two groups of homebuyers?

Lower Interest Rates

The shorter the mortgage term, the lower the interest rate. Therefore, the 15-year fixed rate loans will have lower interest rates than 30-year mortgages. Having a fixed rate mortgage means you will be paying this lower rate for the entire term of your mortgage.

Less Interest Paid Over Time

Going along with the lower interest rates associated with 15-year mortgages, is the amount of interest you will be paying over the life of the loan. If you can afford to make higher monthly payments, you will end up saving thousands of dollars compared to if you were to have a 30-year mortgage.

Predictable Monthly Payment

Your monthly payment will be the same every month with a fixed-rate mortgage. This makes it much easier to plan for the future and keep to a budget. If you have small children and hope to pay off your home before you have to pay for college tuition, having a set monthly payment makes it easier to see where you may be financially at that time.

Pay Off Your Mortgage Faster

The shorter mortgage term obviously means that you will pay off your mortgage faster than a longer-term loan. This also means that you will be building equity faster than you would with a 30-year mortgage.

If you this may be the type of mortgage for you, and are interested in learning more about a 15-year fixed rate mortgage you can apply online today!