15 Year vs. 30 Year Fixed Rate

Have you thought about how you are going to handle your fixed rate? Are you going to get a 15 year fixed rate or a 30 year fixed rate? This is something you must ask yourself in order to make sure the rate on your mortgage is exactly how you want it. The following are some of the advantages that both a 15 year fixed and a 30 year fixed rate has. Read through these and figure out what will work best with your San Francisco mortgages.

15 Year Fixed Rate

When you get a 15 year fixed rate you must know that you will be locked into your interest rate for all 15 years. This is why it is so important that you get a rate that you are happy with right away. You do not have to worry about any changes in interest during the life of the San Francisco mortgages. A great thing about this fixed rate is that you are only on the hook for 15 years of payments. After 15 years you will have paid off the mortgage and you will be able to move onto other things. You do not have to worry about a long drawn out process.

Another great thing about a 15 year fixed rate is that the interest you find yourself paying will also be lower then a longer term mortgage. Your payments will be higher but you will not have to worry about interest in the end. Interest is what can really damage mortgages. You also have great ability to gain equity in your home. If you treat your home well, then you will see it appreciate in value. This is something that everybody needs to take advantage of.

30 Year Fixed Rate

30 year fixed rate San Francisco mortgages offer you more financial flexibility. You are deciding that you want to pay off your mortgage over the long term. This means that you will have lower payments each month, allowing you to have more money to spend on other things. You do not have to worry about larger payments each month holding you back from spending on other important areas. 30 year fixed rates are the same as 15 year fixed rates because your interest is locked in. No need to worry about a change in interest rates on a 30 year either.

The main reason people pick a 30 year fixed is because of that aspect of lower payments. When you pay lower payments you can use some of the money you saved in order to help make home improvements. This will help you increase the value of your home. This is something you might not be able to with a shorter term loan. The interest also occurs over a long period of time, so you can take more time and decide how you are going to work with that. Now that you've figured out which loan you want, please check out the next page for closing day tips.