Economic Conversation

Getting a 15 year fixed mortage could saved you a lot of money in interest, but is it right for you?  If you decide that a 15 year fixed mortgage is what you want, you will need to make sure that you can afford to pay the much higher mortgage payments.  I have a friend who recently refinanced to a 15 year fixed mortgage at 4.25% but they did not realize how steep the payments were going to be.  There is no doubt that you will pay much less interest than a 30 year fixed rate mortgage but your monthly payments will be significantly higher.

Another factor that you must consider is your future.  When you decide on a 15 year fixed mortgage, you will be paying on your mortgage HALF the amount of time of most people.  Is your objective to pay off your house and live there for awhile?  If that is the case, a 15 year fixed rate is not a bad option.  Are you a young adult who plans to live in your current house for three to four years and then hope to get promoted?  If this is the case you might not be able to pay the steep monthly payments and there is no reason to attempt to pay off the home in 15 years if you don’t even plan on living there that long.

Making the decision between a 15 year fixed mortgage and a 30 year fixed mortgage is a very difficult one.  There are many factors that come into play.  Please use the resources provided all over the internet.  A few quick Google searches and you will be able to find more information that you could ever need.  Ultimately, you need to make the best decision for YOU and no one else!