15 Year Fixed Rate Mortgage

When you require a home loan that comes with a certain payment rate monthly, a 15-year fixed rate mortgage could fit your needs. The monthly amount you pay on this loan will not alter for 15 years. Consequently, such mortgages provide homeowners with consistency, which is a top selling point for countless buyers. Whether your home is in Winchester, Strasburg, Purcellville, or Stephens City, Virginia, a 15-year fixed rate loan could serve your household well.

What Is a 15-Year Fixed Rate Mortgage?

Because you will pay a consistent amount for a 15-year period, this kind of mortgage is not unlike a 30-year fixed rate home loan. Like the 30-year term, the payment ratio of interest to principal will change over time. In the initial part of the 15-year period, the majority of your payments goes toward interest. During the last part of the loan term, most of the payments will be used to cover the principal amount.

Benefits of Getting a 15-Year Fixed Rate Mortgage

Since you will be paying this home loan in half the time it would take to pay off the 30-year variety, you can expect to pay more each month. This detail may not work for many people. However, such a loan will cost far less in the end. The annual interest rate determines the real cost of a mortgage, which means you would ultimately pay less than half for this mortgage than you would for a 30-year loan of the same type.

Most financial planners deem the monthly payments for a 15-year fixed rate home loan to be a forced type of savings. In other words, you are compelled to invest money in your home instead of putting the same money into other investments. The property appreciates with time, so your return on investment (ROI) is the increase in the value of your home.

Typically, if you pay less than a 20 percent down payment for your home, the mortgage insurance is going to cost less for a 15-year fixed rate loan than a 30-year mortgage.

When Is a 15-Year Fixed Rate Mortgage Appropriate?

If owing money makes you uncomfortable, then you may want to apply for a 15-year fixed rate home loan instead of a 30-year option. This type of mortgage will enable you to pay it off in half the time of a 30-year term. Such an agreement can be an excellent choice for young families, since many will need to apply their funds to college at approximately the time that the loans will have been fully paid. These loans may also be ideal for those who are nearing retirement. Once the loans are paid off, retirees can use their money for other necessary expenses.

Applying for 15-Year Fixed Rate Mortgage

If a 15-year fixed rate home loan is a plan that interests you, consult Homespire Mortgage today. We serve the residents of Winchester, VA, as well as those in the surrounding areas, such as Front Royal, Stephenson, and Leesburg.


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