15 Year Fixed Mortgage
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 and you’ll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed-rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn’t that great.
A 15-year mortgage can be a great option for buyers who have stable income, minimal debt, and the ability to handle higher monthly payments comfortably. It’s especially appealing for those focused on building equity quickly and saving significantly on interest over the life of the loan. However, it’s important to carefully consider your financial goals and lifestyle needs before choosing between a 15- or 30-year mortgage, since the right fit depends on more than just the interest rate.
15 Year Fixed Mortgage Characteristics
1) A 15-year fixed-rate mortgage has an interest rate that stays the same for the entire loan term, providing stability and predictability
2) Monthly payments are higher than with a 30-year mortgage because the repayment period is cut in half
3) You build equity in your home much faster since more of your payment goes toward the principal balance
4) Borrowers save a significant amount on interest over the life of the loan compared to a longer-term mortgage
5) The shorter payoff timeline allows you to own your home outright in just 15 years instead of 30
6) This type of loan is often chosen by buyers with higher or more stable incomes who can comfortably afford the larger monthly payments
7) A 15-year mortgage can free up long-term financial flexibility by eliminating your mortgage payment sooner
8) While it offers long-term savings, the higher monthly cost may make it harder for some borrowers to qualify or maintain other financial goals
5) VA loans do not require mortgage insurance, which can save borrowers money on their monthly payments
6) VA loans have flexible credit requirements, which can help borrowers with less-than-perfect credit still qualify for a mortgage
7) VA loans can be used to purchase a variety of property types, including single-family homes, multi-unit properties, and condominiums
8) VA loans allow for options for refinancing, including streamline refinancing and cash-out refinancing, which can help borrowers lower their monthly mortgage payments or access equity in their home.
Disclaimer: Johnnie Fleming, NMLS #1177346 – NEXA Mortgage ("LD," "We," "Us," "Our") is exempt from mortgage and NMLS licensing for the states we lend in. Our loan products require a business purpose, and the property must be used as a non-owner-occupied investment property, also known as a rental property. Our rates, loan terms, and loan conditions are only offered to qualified borrowers, and may vary based on loan product, credit score, real estate investment experience, deal structure, property state, and several other applicable considerations. Our rates, loan terms, and quotes, are subject to change daily, at any time, with or without notice. Loans requiring less documentation may result in a higher interest rate and higher annual percentage rate ("APR").
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