15-Year FRM

 15-year fixed rate mortgage

A 15-year fixed rate mortgage is an incredibly useful financial tool if you qualify for it. A 15-year FRM maintains the same fixed interest rate over its 15-year term. It’s a popular choice for homeowners who don’t mind making a slightly higher monthly payment in order to save significantly on interest over the life of their loan. Another advantage to the 15-year FRM is that its interest rate is generally lower than that of the 20-year FRM and 30-year FRM.

Although the 15-year fixed rate mortgage is one of the most common home loan options, it’s certainly not right for everyone. Here’s more about the 15-year FRM.

 

Is a 15-Year Fixed Rate Mortgage (FRM) Right for Me?

There are no hard and fast rules to determining if a 15-year FRM is right for you. However, most people who opt for this home loan meet some or all of the following criteria:

  • You’re a savvy saver.

  • You are comfortable with (potentially) a higher monthly mortgage payment.

  • You like the idea of knowing exactly what your monthly payment will be for the next 15 years.

  • You plan to stay in your home for at least a few years.

  • You can afford a large down payment.

  • You have a reliable source of income.

A 15-year mortgage can save you massive amounts of money. First, you’ll only be paying your loan for 15 years (rather than the more typical 30), so you’ll be debt-free in half the time. Second, interest rates are lower for 15-year mortgages than they are for longer terms, so you’ll pay less interest as well.

One of the main disadvantages of the 15-year mortgage is that your monthly payment, by comparison to a loan with a longer term, will be higher. However, if you can find the perfect home on a smaller budget, score a beautiful fixer-upper in a great neighborhood, or simply don’t mind paying a bit more per month, this loan may be ideal for you.


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The Interest Rate on a 15-Year FRM

What interest rate can you expect with the 15-year FRM? Interest rates fluctuate daily, but as of 2018, the interest rate for the 15-year fixed rate mortgage is around 4 percent. One of the main benefits of the 15-year FRM is its interest rate -- which is usually significantly lower than a 20- or 30-year mortgage.

If you'd like to learn more about the 15-year fixed rate mortgage or want a free quote, fill out the form below for a risk-free consultation.


Fixed Rate Mortgages: Additional Resources

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