15 Year Fixed Mortgage Rates Provide Fixed Deductions

A 15 year fixed mortgage rate is a type of a loan whose interest rate value remains the same throughout the duration of the loan. One example is that you take a loan of $300,000 at an interest rate of 5.75%, then the monthly payment would come to $3,097.90. This monthly payment will not change as the interest rate remains the same throughout the duration of the loan.

The 15 year fixed mortgage rate is preferred by people who plan a fixed deduction from their monthly budget. These people would also prefer a shorter loan term and are able to pay a higher monthly payment. The advantages of 15 year fixed mortgage rate are many. First of all you can predict how much you will be paying each month. Hence you can plan out your expenses accordingly. Even the pay down of the 15 year mortgage rate is less than the pay down of the 30 year fixed mortgage rate. The procedure for applying for the loan and paying the interest is relatively simple. There is no need to worry about the rate fluctuation also.

However the 15 year fixed mortgage rate has its own set of cons as well. The payments are quite higher than the 30 year fixed mortgage rate. Hence everyone will not be able to qualify for these loans. Even the mortgage tax deduction on the 15 year old loan is less than the 30 year fixed loan.

The latest news display that the 15 year fixed mortgage fell down by 1 beginning point’s form 4.49% to 4.48 %. The 15 year fixed mortgage rate on 1st September, 2009 was down by 6 main points from the last week’s average rate of 4.54% and it was also down by 36 basis points from the average rate of 4.84% three months ago.

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