HOMEOUR PROCESSOUR TEAMJOIN OUR TEAMTOOLS CONTACT LIFESTYLE READ TIME: 4 MIN Lots of Variables with Fixed-Rate Mortgages When selecting a fixed-rate mortgage, a prospective borrower has to determine how many years to finance the loan. Some financial institutions offer 10-year and 20-year, fixed-rate mortgages as well as 15-year and 30-year, fixed-rate home loans. For the purpose of comparison, this worksheet takes a look at 15-year and 30-year, fixed-rate loans. The payments on a 30-year mortgage are generally lower than 15-year loans, but their interest rates tend to be higher. The lower payment comes from spreading out the loan over twice as many payments. Because of the longer timeframe, a 30-year mortgage owner pays more in interest payments than a 15-year mortgage holder. A 15-year mortgage is paid off twice as quickly as a 30-year mortgage, which may allow the home buyer to build equity at an accelerated rate. The payments on a 15-year loan are higher – but they aren’t usually twice as high – as a 30-year loan. To get a better idea of the differences, take a few minutes and add some numbers to the accompanying worksheet. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2021 FMG Suite. Share | Related Content To Buy or Not to Buy The decision whether to buy or rent a home may have long-term implications. Fixed or Variable Mortgage, Which Should You Pick? When selecting a mortgage, one of the most critical choices is between a fixed or variable interest-rate mortgage. Comparing Mortgage Terms Estimate the total cost in today's dollars of various mortgage alternatives. 5925 Carnegie Blvd. Suite 300 Charlotte, NC 28209 Ph: 704-817-1561 teague_barry@nlgroupmail.com Have A Question About This Topic? Name Email Question Check the background of your financial professional on FINRA's BrokerCheck. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information. Copyright 2021 FMG Suite. Securities and investment advisory services are offered through registered representatives and investment adviser representatives of Equity Services, Inc., Member FINRA/SIPC, Broker/Dealer and Registered Investment Adviser, 5925 Carnegie Blvd., Suite 300, Charlotte, NC 28209 (704) 554-6404 The Teague Group and all other entities and individuals referenced are independent of Equity Services, Inc. unless otherwise noted. Barry Teague offers securities in CA, GA, NC, SC, VA. Contact The Teague Group Office: (704) 817-1560 Fax: (704) 554-6536 5925 Carnegie Blvd. Suite 300 Charlotte, NC 28209 teague_barry@nlgroupmail.com Quick Links Retirement Estate Insurance Tax Lifestyle All Articles All Videos All Calculators All Presentations