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Why is a 15-year fixed rate mortgage better than a 30 year?
Why is a 15-year fixed rate mortgage better than a 30 year mortgage? Are there other factors that I should think about?
Asked By Kayla | Portland, OR | 278 views | Finance Legal Info | 6 months ago
Answer(6)
Lisa and Greg Harris
eXp Realty, LLC
A 15 year will have a lower rate because it has a higher payment with more going to the principal to pay it off faster. However, I recommend to do a 30-year and just make a couple of extra payments a year and it will be paid off in almost half the time similar to the idea of a 15-year loan, but then if you are in a hardship and can not make the extra payment, than it is not an issue.... But if you can make those extra payments you are in great shape!
- 5 months ago
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Amy Andrews
Amy Andrews
A 15 Year Fixed rate will provide a lower Interest Rate. In return, lowering your amount of paid Interest over the life of the Loan. Qualifying may be more difficult as the Monthly payment will be higher.
- 6 months ago
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A 15 year mortgage typically has a lower interest rate than a 30 year. It also applies more money towards the principal of the loan than a 30 year option would. However, a 15 year mortgage may be harder to qualify for due to the higher monthly payment.
- 6 months ago
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ADRIANA ROSSI
Century21redwood
A 15-year fixed-rate mortgage offers quicker homeownership and long-term savings.
Fixed interest rate, monthly payments remain constant throughout the loan term.
Lower total interest payments, faster equity building, and financial discipline.
Higher monthly payments and less flexibility in times of financial strain.
- 6 months ago
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Gabriel Garces
Americasa Realty
Take the 30 Year Mortgage for lower monthly payments. It makes it easier to qualify for the mortgage.
You can always make extra payments if you want, but now you always have the comfort of a lower payment in case money gets tight.
- 6 months ago
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