Fixed Mortgage
Would a 15 year fixed mortgage save me money?
Just curious if a 15 yr fixed rate mortgage will save me money every month? My hubby's boss told him that we should go with a 15 yr fixed rate because it only at our house payment by $ 100 a month, and we should do every other month (bi-weekly – which ever one is where you pay 1 / 2 payment 2 times a month) – It is true that we would save money doing this?
A 15-year fixed Mortgages will cause your monthly payment to be somewhat higher than if you had the same mortgage for 30 years. But you save a ton of money during the 15 years life of the loan because you pay only interest for 15 years instead of 30 years. Think of it this way. You may have to pay $ 1,500 every month for 15 years with a 15-year mortgage, but at the end of 15 years is paid and done. The same mortgage that 30 year fixed, might only cost you $ 1,350 per month, but in 30 years (so you would have to pay the $ 1350 x 12 months X30years instead of $ 1500X12months X15years).