15-Year Fixed Rate

15-Year Fixed Rate

If you are looking to pay your loan off as quickly as possible, a 15 year fixed may be the best option for you. This loan is fully amortized over a 15-year period and features constant monthly payments. It offers all the advantages of the 30-year loan, plus a lower interest rate, allowing you to own your home twice as fast. The disadvantage is that, with a 15-year loan, even at a low interest rate you will have a higher overall payment because you are shorting the repayment term by half. Many borrowers opt for a 30-year fixed rate loan and voluntarily make larger payments that simulate a 15-year payment schedule. This approach is safer than committing to a higher monthly payment because it preserves your ability to switch payments back to a 30-year schedule if need be. If you opt for a 30-year loan, however, you will not be able to take advantage of the lower interest rate offered with a 15-year loan.