One of the most challenging aspects of purchasing a new home is assessing which mortgage will work best for you. With so many options available, deciding on how to finance your property can be an extremely arduous and time-consuming process. And while there are several loans worth considering, mortgage lenders in Atlanta suggest getting a 15-year fixed rate mortgage because of its many benefits.
The experts at BrightPath will work with you to find the best loan solutions to meet your unique needs.
The Ins and Outs of a 15-Year Fixed Rate Mortgage According to Mortgage Lenders in Atlanta
According to mortgage lenders in Atlanta, a 15-year fixed rate mortgage is a structured financing plan with a set interest rate that you are required to pay off over a 15-year period. This loan type requires that you make a 5-20% down payment on the home. However, the amount you put down should be determined by the amount you would like to borrow. To receive more money from your lender, you need to put more money into your down payment.
The Benefits of a 15-Year Fixed Rate Mortgage
One of the main reasons 15-year fixed rate mortgages are so highly revered by mortgage lenders in Atlanta is because of their many advantages.
- Stable monthly payments and interest rate. Since this loan type is a fixed rate mortgage as opposed to an adjustable rate mortgage, your payments and interest rate are guaranteed to stay the same throughout the loan term. This protects you from rising interest rates and instability in the housing market.
- Lower interest rates and costs compared to other loans. Mortgage lenders in Atlanta know that a 15-year fixed rate mortgage poses a lower risk for the lender. As a result, your lender will be willing to negotiate a lower interest rate than with a longer-term mortgage. And while the monthly payments will be higher compared to other loans, the total interest paid will be lower because the term of the mortgage is shorter, which will save you tens of thousands of dollars overall.
- Efficient way to build home equity and pay off your mortgage. A 15-year fixed rate mortgage allows you to put more money towards the principal payment, which will help you to build your home equity much faster than with other loans. And since this mortgage term is much shorter, you can quickly pay off the balance to lessen the time you will be beholden to a lender, which will afford you the ultimate peace of mind.
When to Consider a 15-Year Fixed Rate Mortgage
While a 15-year fixed rate mortgage has many advantages, mortgage lenders in Atlanta recommend it for you if you can afford to make larger monthly payments and are attracted to the stability of a set interest rate. It is also best if you plan to live in the property for at least a few years. And with the increased equity in your home, a 15-year fixed rate mortgage can help you to refinance for a shorter loan term down the line.
Work with Mortgage Lenders in Atlanta to Get the Loan You Want
With a 15-year fixed rate mortgage, you can feel confident about getting into the house of your dreams because you will know that that the interest rate will never fluctuate.
Contact BrightPath today to schedule a consultation and learn more about your loan options.
When you work with the experts at BrightPath, you will get the comprehensive analysis and answers you need to make informed decisions for your future.