30-year Vs 15-year Mortgage Loan
The current economic atmosphere has changed the ordinary view on traditional mortgage and its alternatives. The 30-year fixed-rate mortgage does not look as secure anymore, and adjustable-rate mortgages don’t look any riskier.
Recently, there has been increased activity in a fixed-rate mortgage with a 15-year term. These loans are getting popular among consumers who want to get out of debt more quickly and they realize that it comes at a price. A higher monthly payment in the current economic situation requires stability in the employment status and income.
A 15-year loan has 180 fewer interest payments than a 30-year loan, and the borrower with a 15-year loan would pay less in interest over the life of the mortgage. When the rates for 15-year mortgages lowered, it generated more demand than conventional loans.