Like most people, if you think of buying a house, then you probably wonder about a 30-year old mortgage to get the right refinance rates. And the reason behind this is nothing but low payment. But at the same time, there are manifold risks associated with them.
In this post, we’ll discuss the benefits of a 15-year fixed-rate mortgage and how it makes sense in the low-rate environment.
- Interest Savings over Time
There’s no denying that you are likely to pay less interest as per the term. If you ever consider the graph of a schedule for a 30-year loan, you’ll notice that you pay more toward interest than you do on the principal.
On the other hand, when you pay for shorter-term loans like 15-year fixed, you will notice that you will pay more toward the balance every month instead of the interest. Considering the amount of your loan, it is wise to think as you are likely to save thousands of dollars over the period of time.
- Lower Interest Rate
It couldn’t be wrong to say that inflation tends to rise over time in a healthy economy, meaning longer-terms will have a higher interest rate. With a long term, investors are forced to project out inflation further in advance.
When rates are generally trending lower as they are now, especially low-interest rates can help alleviate the impact that your payment is higher because of the shorter term. Although mortgage discount points mean paying more upfront at closing, you can calculate the point, at which your savings would cross the limit of the closing cost.
It makes sense to choose the best refinance rates even if you are planning to stay in the home past the breakeven point.
- Pay off Your Mortgage Faster
One of the best things about choosing a 15-year fixed mortgage, you may end up paying your mortgage off faster. This would ultimately minimize your financial burden to an unprecedented scale.
Who Should Choose 15-Year Fixed Mortgage?
You must choose a 15-year fixed mortgage if;
- You can afford a Higher Payment. If you have no issue with a higher payment, it is worth to consider a 15-year fixed.
- You’re Getting Ready to Retire: You can look to pay your mortgage off to have one less bill during retirement when you are looking to get the best refinance rates.
A 15-year mortgage, as you could see, comes with a multitude of advantages, even if it’s not for everyone.
Bottom Line
So, that’s a wrap-up to the reasons you should choose a 15-year fixed mortgage!
If you are looking to get the right refinance rates, then it’s worth trying to choose a lender and to make your investment a lucrative one.
Are you looking for one? If so, PureLoan is here to help you out!
PureLoan is a credible destination that may provide you with the best refinance mortgage rates to make your home as affordable as much. Our dedicated and experienced team of refinance experts will help you choose from a range of mortgage programs.
To learn more about the best refinance rates, visit https://www.pureloan.com/ today!
