15-Year Fixed-Rate Mortgage
If your dream of homeownership includes paying off your mortgage quickly, you can be rewarded with a sense of satisfaction, as well as lower interest rates, with the 15-year fixed mortgage. The traditional 30-year mortgage is not for everyone and the 15-year is rising in popularity. If you’re looking for a home in Cumberland or other areas of Allegany County, MD, plus WV and PA, this mortgage may be right for you.
The Fixed Rate Mortgage Paid Off in 15 Years
Like the 30-year fixed-rate loan, your interest rate is the same throughout the entire loan period on the shorter loan. At the start, your monthly payment mostly goes toward the interest on your mortgage. Over time, a larger share of each house payment will go toward the mortgage principal, quickly increasing your home equity. All this happens in a much shorter time frame with the 15-year fixed home loan.
Who’s the Best Fit for a 15-Year Mortgage?
If a larger monthly payment will suit your budget, you can save on the total interest paid when you choose the 15-year mortgage. Essentially, you’ll be paying less for your house than with a longer loan term. Some home buyers simply prefer to pay off the house at a faster pace than the 30-year option offers. Homebuyers who are attracted to the 15-year fixed mortgage are often families with young children. These buyers plan to pay off their home before sending the kids to college. Older buyers may like the 15-year payoff in order to enjoy their retirement with no house payment to worry about.
Benefits of the 15-Year Fixed-Rate Mortgage Loan
When you choose the 15-year fixed home loan, you’ll build equity in your home sooner and save on total interest, of course. If your down payment is less than 20 percent, you’ll have a shorter period of time with mortgage insurance added to your house payment. When you reach 20 percent, mortgage insurance is no longer required and the lender will remove it from your payment.
If this does not occur automatically, you can request it from your lender when you reach this milestone. (If you have an FHA-backed mortgage, you’ll need to refinance it to remove the insurance.) As mentioned, you’ll also pay off your home in much less time with a 15-year fixed mortgage, so you’ll soon be able to use those funds for your other priorities.
How to Apply for a 15-Year Fixed Mortgage
When you apply for your home loan with Homespire Mortgage, we offer a stress-free process that helps you get approved sooner with less hassle. We can provide details on all types of mortgage options, including the 15-year fixed rate mortgage. We’ll then guide you through the application process for your chosen loan. We serve the local areas of Frostburg, MD, Cumberland, MD, Lonaconing, MD, and Westernport, MD from our headquarters in Cumberland. In WV, we provide mortgages in Short Gap and Keyser, and in PA we serve the Bedford areas.
Contact Homespire Mortgage to find the best home loan for your needs – today!