15 Year Fixed Mortgage: Pros and Cons

15 Year Fixed Mortgage

When considering options for your mortgage often times you are offered a few different payment plans which differ due to the amount of time it takes to pay off each. Today we will be focusing on the fifteen year fixed mortgage plan and the benefits and potential hurdles of a plan centered around a fifteen year repayment schedule. In general the fifteen year repayment plan that defines a fifteen year fixed mortgage is preferred by individuals who have an interest in paying less overall for their house as the shorter time frame helps to lessen the amount of interest that is accrued over the term of the loan.

Pros

The pros of a fifteen year fixed mortgage are as follows: a fifteen year mortgage enables you to pay off your loan faster than a fixed thirty year mortgage. This decrease in time spent paying off the loan results in far less interest normally equalling thousands off the total repaid amount. On top of less interest paid the interest rate also is lowered. The amount of flexibility it affords is also unparalleled if you can afford a fifteen year fixed mortgage.

Cons

There are also a few drawbacks to consider when looking into a fifteen year fixed mortgage such as, a higher monthly payment. If you can afford it the higher payment is no true impasse but if there is a question to whether or not you could properly afford the payment every month borrowers might wish to reconsider. Of course if you have the ability to look for an even shorter term loan then a fifteen year loan might be too long for you and a loan numbering ten or less years might be better suited to your finances. Finally the biggest hurdle a fifteen year mortgage can manifest is lower qualification for mortgage value and of course home value.