There are many reasons why people are choosing the Quicken Loans 15-year fixed-rate mortgage. This loan option gives home buyers the opportunity to save thousands in interest compared to a 30-year fixed-rate loan. Homeowners will pay their loan off in half the time, which allows them to build equity in their home faster. One of the most attractive components of a 15-year fixed is that payments are amortized over the duration of the loan, meaning there are scheduled monthly payments of both principal and interest throughout the 15-year life of the loan. This allows the homeowner to avoid experiencing “payment shock,” and it gives them the assurance of a consistent rate over the duration of the loan.
Who Does a 15-Year Fixed-Rate Mortgage Benefit?
The 15-year fixed is a great option for anyone who’s looking to buy a home for the very first time, or if someone’s looking to refinance their existing mortgage. With a 15-year fixed, first-time home buyers could pay as little as 5% of the total home cost on their down payment. For those who are looking to refinance, a 15-year fixed allows home buyers to refinance up to 95% of their primary home’s value. The Quicken Loans 15-year fixed is a conventional loan, which means it’s backed by Fannie Mae and Freddie Mac. However, if someone is in need of additional assistance and they like the benefits of a 15-year fixed, Quicken Loans also offers this loan as an FHA and VA loan.
How Does a 15-Year Fixed-Rate Mortgage Compare to a 30-Year Fixed?
Other than the length of the loan, there are other differences between 15-year fixed and 30-year fixed mortgages. A 15-year fixed loan comes with the expectation that monthly payments will be at a higher rate. Homeowners can also expect to pay less interest over the life of the loan because the time is cut in half. On the other end of the spectrum, 30-year fixed loans have lower, more affordable fixed monthly payments, but throughout the life of the loan, the borrower ends up paying more in interest. Here’s an example of the difference between a 15-year fixed and a 30-year fixed based on today’s rates.
If you think a 15-year fixed-rate mortgage is the right fit for you, be sure to contact Quicken Loans at 800-251-9080, or visit QuickenLoans.com.
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