The Advantages Of The 15 Year Fixed Mortgage Rate

re many advantages to borrowing with a 15 year fixedconsuming, and they hire a mortgage broker to find
mortgage rate. Securing a loan with a 15 year fixedthem the best rates. Many lending companies have
mortgage rate is the best option for many borrowerstheir own mortgage brokers; however if you prefer to
because the amount of interest paid over the term ofuse an independent broker, he/she has a large
the loan is about half of that with a 30 year mortgagenetwork of lending institutions in which to negotiate
with the same fixed mortgage rate. Often the 15 yearwith. Whether you use a broker or hunt on your own
fixed mortgage rate is about a half percentage pointfor the lowest 15 year mortgage rate, it pays to shop
lower than that of the 30 year mortgage rate also.around on the internet before you sign on the dotted
The payments will be higher per month with a 15 yearline.
mortgage, but the amount of overall interest paid overThe payments on a 15 year fixed rate mortgage loan
the life of the loan is much lower.can be a little steep; therefore, it pays to use a
If you want to know just how much money you will bemortgage calculator to narrow down just how much
saving on interest by choosing a loan with a 15 yearhouse you can afford to buy. The thing to so before
fixed mortgage rate in comparison to a loan with a 30you are ready to buy a home is to save. Cut back on
year fixed mortgage rate just go online and access aexpenses and save that money in a separate account
mortgage interest calculator. You will see if youthat will one day be your down payment. By offering a
borrow $200,000 at a 15 year fixed mortgage rate oflarger down payment you can often lock into a better
5.75 percent you will be paying back less than $99,000interest rate, because the lender wants your business.
in interest, whereby the 30 year loan at 6.25 percentA 20 percent down payment is a sizable down
interest will come to about $240,000 paid back inpayment; the lender will use this money to secure the
interest. It makes good sense to choose a 15 yearloan to protect them in case you default on the loan,
fixed mortgage rate over loan with a 30 year fixedand this keeps you from having to take out extra
rate.insurance for that purpose. If your budget can handle
Some borrowers prefer not to do all the workthe larger monthly payments it will be to your
themselves, because finding the lending company withadvantage to choose the 15 year fixed mortgage rate
the best 15 year fixed mortgage rate can be a bit timeloan.