For 15 year fixed mortgage rates in Louisville KY or Indiana call 502-405-8834
Although 15 year fixed rate mortgages have higher payments than their counterpart 30 year mortgages, the buyer ends up paying a lot less to own their home due to how much they save on paying less interest. And although we do more 30 year mortgages here in Louisville KY and Indiana, the 15 year is the overall money saving option.
Advantages of a 15 year fixed rate mortgage?
The primary benefit is that the borrower is able to pay the home off in half the time that it would take to pay a 30 year fixed rate mortgage. In effect the overall cost of the home is drastically reduced. Not only do lenders fund the loan at a lower interest rate, but with the principal being paid off much quicker less overall interest is paid.
Another advantage of a 15 year fixed rate mortgage is that the rate never changes over the life of the loan. The principal and interest for the entire life of the loan are known on day one, and doesn’t change. The only thing that can effect the monthly payment is if the taxes and insurance are being payed from an escrow account, which can effect the amount of the monthly payments. Other than that the numbers stay the same.
Disadvantages of a 15 year fixed rate mortgage?
The payments are higher. In a nutshell this one thing is the biggest disadvantage. Life can be fickle, and everything can be fine in a 2 income household and making the larger payment can seem easy. But if tragedy strikes and a bread winner is physically hurt and can’t hurt for an extended period of time, making the higher payment associated with a 15 year fixed rate payment could potentially become difficult.
Then there’s the economy. Who would have predicted todays unemployment rate 10 years ago? A lot of home owners with 15 year mortgages would have to scramble if a spouse lost a high paying job due to a company closing or relocating over seas. 15 year mortgages simple don’t leave room for much flexibility in some budgets.
Which should you choose?
That’s why we’re here. Call us and we can discuss your situation and your options. We will provide you with the necessary information to be able to know what is right for you at this time in your life. Consultations are free and we’re here to help. The mortgage business can be confusing when you don’t have proper guidance, and that’s why we offer our free consultation service. If you don’t get started you’ll never get there!
For 15 year fixed rate mortgage rates in Louisville KY or Indiana 502-405-8834