Interest rates at record lows? You will probably think about refinancing a mortgage to save money. If you currently have a 30-year loan, you may have trouble deciding whether to refinance a 15-year mortgage or stick to a 30-year term.
Moving to a 15-year mortgage will allow you to repay your home faster and save more money on interest. But refinancing a short-term loan can increase your monthly mortgage payments and make it harder to meet them.
What is a 15-year fixed-rate mortgage?
A fixed-rate mortgage for 15 years is a mortgage in which the borrower repays it for 15 years at a fixed interest rate. This means that the interest rate on the original loan will not change throughout the course of the loan. Fixed rate loans are more desirable for some sellers because they do not have to worry about which direction interest rates will go in the future.
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