Last week the mortgage interest rate on the 30 year fixed loan was below 5%. Now, though, it has inched up. However, the 15 year fixed mortgage interest rate is at 4.48%. That’s great stuff. If you can swing a 15 year loan, whether you are buying a home or looking to refinance, that might be a great choice.

Advantages of a 15 year home mortgage loan

In many cases, your monthly payment will be higher with a 15 year home mortgage loan. However, even though you are paying a higher payment, you are saving money in the long run. The lower interest rate, and the shorter loan term, ensures that you are paying much less than if you had a 30 year fixed loan. You can save tens of thousands of dollars over the life of your loan.

In addition to saving money, you will also build home equity faster. This means that your home’s value is available to you. Additionally, if you sell, you will get a larger chunk of cash, which can help you with the down payment on your next home.

Of course, you can achieve some of the same effects if you make extra mortgage payments on a 30 year loan. This way, if something happens, and you can’t make the extra payment, you can just revert to your regular payment schedule. This is not the case when you have 15 year loan. If something happens and you can’t make the higher payments, then you are in trouble.

Before deciding if a 15 year mortgage is right for you, make sure you consider your options, and weigh your financial decision. You want to make sure that you do what is right for you.