15-Year Fixed-Rate Mortgage
15 Year Fixed Mortgage
Best mortgage companies Cypress Creek
15-Year Fixed Mortgage
With the same advantages as the 30-year mortgage plan, the only difference is that you have to make the full payment in half the time. It has 180 monthly payments with a constant interest rate allowing you to take ownership of your house in just 15 years. The payments are increased but proper financing can help you stay on top of things.
Knowing how much you have to pay can help you keep your finances straight and keeps you prepared for any future surprises.
Qualifying For a 15-Year Fixed-Rate Mortgage:
It is rather easy to be qualified for a 15-year mortgage plan. Your Debt-To-Income ratio must be less than 45% and slightly 3% down.
You will need to be employed or retired. If you are self-employed, you must have around two years of tax returns to prove your income.
It is rather hard to score a 15-year plan than a 30-year loan as the mortgage payment rounds up to almost double the latter.
Benefits Of A 15-Year Fixed-Rate Mortgage:
- You’ll pay off your house much faster
- Lower interest rate means less interest you’ll pay to the bank
- Larger upfront yearly tax benefit since you’ll be paying a higher payment (check with your CPA). Over time though this tax benefit dwindles as more of your payment goes to principal.
- Once your loan is paid off in 15 years you can put that money to work somewhere else while someone on a 30-year fixed will be paying for another 15 years.
