The 15-Year Mortgage: Pros and Cons. A 30-year fixed-rate mortgage at 3.88% has monthly payments of $1,176 and a total interest cost of.
Should you get a 30-year mortgage or a 15-year mortgage? Here we go over the pros and cons of each so you can make an informed decision.
3 minute read. A 15 year mortgage will have a lower interest rate and you’ll pay off your home much faster. However, there are drawbacks to consider. In this article we will go over the pros and cons of the 15 year fixed rate mortgage.
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With a 15-year mortgage you’ll own a home much faster and save a lot of money, but you‘ll face higher monthly payments. nerdwallet’s 15-year vs. 30-year mortgage calculator allows you to compare.
However, they can’t make the decision for you. You’re responsible for the monthly payment, and therefore, it’s important to select a term that you can handle. Carefully review the pros and cons of both a 15-year mortgage and a 30-year mortgage, and if you doubt your ability to keep up with higher payments, choose the longer term.
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Con: The monthly payments for a 15-year mortgage are higher than a 30-year. For instance, if you took out a $200,000 mortgage at a 3.92 percent interest rate for 30 years, your monthly payments would be $946 (without factoring in taxes and other costs). If you took the same terms but paid off the mortgage in 15 years, you’d pay $1,471 a month.
The Bottom Line on the 15 vs 30 Year Mortgage With the current rock-bottom interest rates , now is an excellent time to look into a 15-year loan. And these loans are certainly gaining in popularity-even though 80% of new home loans are still the traditional 30-year fixed rate mortgage.
2. The monthly payments are more affordable than a 15 year mortgage: With a $150,000 balance a 30 year mortgage payment would be $727 per month, a 20 year mortgage payment would be $889 per month, and a 15 year payment would be $1,063 per month. This makes the 20 year mortgage $174 cheaper than a 15 year mortgage and only $162 more expensive than a 30 year mortgage.
By comparison, you’ll spend $120,000 more over 30 years than you would for a 15-year fixed loan. What it really boils down to are the monthly payments. An extra $400 per month is a lot to swallow for a 15-year mortgage. You certainly don’t want to overextend yourself with a 15-year mortgage and struggle to make payments.
fha requirements for mobile homes current 15 year rates Current Wells Fargo Mortgage Rates – Monitor Bank Rates – The bank is also advertising a conventional 15-year fixed rate mortgage that is currently under 5.00 percent at 4.75 percent. The national average mortgage rate for a 15-year mortgage is 4.63 percent.FHA Guidelines for Double-wide Foundations – Budgeting Money – FHA Guidelines for Double-wide Foundations. If the home does not meet the FHA criteria of "permanent dwelling," it is ineligible for financing as it is considered personal property, not real estate. The FHA requires that a mortgage cover both the manufactured unit and the site for a 30-year mortgage. The U.S.