Of course, you don’t need to fall into either category to appreciate the savings this mortgage provides home buyers. Check out the advantages below and what you need to know when considering your options.
A 15-year mortgage means a larger chunk of your monthly payment goes toward paying off the loan principal instead of interest owed. So, you’re building equity faster and spending less on overall interest.
Let’s take for example a $350,000 home. If market rates were 4% for a 30-year mortgage and 3.25% for a 15-year mortgage, you can expect to pay under $100,000 in interest through the life of the 15-year loan. That’s a savings of over $150,000!