There are numerous benefits to a 15-year mortgage, since it is paid off more quickly than a longer term mortgage.
Here are 4 benefits of a 15-year fixed mortgage that you may want to consider.
#1 Pay Off Your Home More Quickly
There is something about the financial freedom achieved by owning a home, free and clear from a mortgage.
One of the biggest advantages of a 15-year mortgage, over a longer term loan, is that your home will be paid off more quickly. Not only will this save you a lot of money, you will have the financial freedom of owning your home free and clear of a mortgage.
#2 Pay Less Interest
With a 15-year fixed mortgage, you will pay less interest compared to a longer term mortgage.
If you had, for example, a 30-year mortgage, there would be twice as many years in which interest would add up. As a result, you could pay more than double the amount in total for your home.
With a 15-year mortgage, you reduce the time to pay it off, reducing the amount of interest you pay.
#3 Get Lower Rates
With a 15-year mortgage, you’ll typically get a lower interest rate than a 30-year mortgage. With a lower interest rate, you will save additional money over just paying off your mortgage more quickly.
If you would like to experiment with mortgage rates and mortgage terms, here are some tools:
#4 Enjoy Retirement Without a Mortgage
Many people dream of retiring with a mortgage payment, which allows many retirees to do the things they weren’t able to do while working, such as travel.
One of the benefits of a 15-year mortgage can be spending retirement without a mortgage payment, since the mortgage is paid off more quickly.
A 15-year mortgage may be more affordable than you think, and could save more money than you imagine.
Editor's Note: This syndicated content is edited by Marimark Mortgage before we distribute it, to better inform our readers.