QandAs: Loans

What is a 15 Year Fixed Loan?

Answer:
A 15-year mortgage is perfect for homeowners who want

to pay off their home loan in a shorter period. Traditional mortgage loans are 30 years, and it can take several years to gain equity. On the other hand, a 15-year mortgage loan quickly reduces the principal balance, and the property gains equity relatively quick.

In addition, this shorter term carries a lower rate than traditional mortgage terms. Borrowers who choose a 15-year mortgage term can opt for a fixed rate or an adjustable rate mortgage. Fixed rate home loans are less risky because the interest rate and monthly payments remain the same throughout the life of the loan.


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