15-Year Fixed Loan
Fifteen-year fixed-rate loans grow in popularity when interest rates are as low as they are now and they can fit wonderfully into long‐term financial planning. When compared to 30-year fixed-rate mortgages, 15-year loans offer lower interest rates, allow you to build equity more quickly and can easily save in interest payments.
Paying for your home as quickly as possible is recommended by many money pros. This allows you to meet your other financial goals – like saving for retirement and paying for your children’s education much more easily. It is an exceptionally good time to apply for a 15-year fixed‐rate mortgage since you can lock in a competitive rate and a stable monthly payment. Adjustments are only made to the optional escrow account, which covers homeowners insurance and property taxes. However, these expenses can be paid separately.
Fixed‐rate loans, in general, must be refinanced to take advantage of lower interest rates and a 15‐year loan has a higher monthly payment than a 30‐year loan. So you will generally have to buy a less expensive house to afford this type of loan.
Benefits of a 15-Year Fixed‐Rate Loan:
- Lower interest rates
- Allows you to build equity more quickly
Example Loan Scenario:
- Loan Amount $328,000*
- Loan to Value from 75.01% - 80%
- Interest Rate 2.875% and Annual Percentage Rate 2.959%
- Loan Term 15 years
What You Need:
- Your driver’s license
- Your social security card
- Payment stubs for the past month
- Contact information for your landlord
- Copies of your past two tax returns if you are employed
- Copies of your past three tax returns if you are self employed
- An accounting of regular monthly bills, including account numbers
- A profit and loss statement for the current year if you run a business
- Three months of statements for all of your savings and investment accounts