30 Year vs. 15 Year Fixed Rate Mortgage

Can’t Decide Whether to Pick a 30 Year or 15 Year Fixed Rate Mortgage?

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These tips may help you decide.

Most people who easily decide on a 15 year fixed rate mortgage are at least 40 years old.The reason behind that is obvious.  People in their 40s, 50s and up are willing to pay more on their monthly mortgage to pay off their mortgage loan quicker.

Besides that, the 15 year fixed rate client has usually saved a fair amount of money or has seen a considerable increase in their salary history over the years.

Someone in their 20s and 30s is usually starting a family and is putting money aside for  their childrens’ educational fund and other things that are needed right away, so there is less money to go around.
A 30 year fixed rate mortgage is perfect for young families because monthly payments are lower and,  generally speaking, younger people have more time to pay off their mortgage.

Another deciding factor is how self-disciplined the borrower is at saving money. The less disciplined, the better a 15 year mortgage is for that person. or family.
Lastly, how close is the borrower to retirement? The closer the borrower is to retirement age, the better a 15 year fixed rate mortgage is.

If you can’t decide, call Global Lending Solutions for a more detailed analysis of your financial goals and objectives.