advantages of 15 year mortgage

 · ARM Strength. The advantage of a 5/1 ARM is that during the first phase, you get a much lower interest rate and payment. If you plan to sell in less than six or seven years, a 5/1 ARM could be a smart choice. In a five year period, that savings could be enough to buy a.

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Whether you are about to buy a home or already have a 30-year mortgage, consider the benefits of choosing a 15-year loan or refinancing to increase your net worth. compare 15-year Term to 30-Year Affordability, Stability and Flexibility are the three reasons home buyers overwhelmingly choose a 30-year term, according to Freddie Mac chief economist, Frank Nothaft.

Is Making Biweekly Mortgage Payments A Good Idea?. interest to build up and over the course of a 30- or 15-year mortgage that can equal years eliminated from your loan.. the same advantage.

In 2007, only 11% of all borrowers opted for the 15 year mortgage, while in the first quarter of 2012, that number rose to over 50%. When weighing the benefits of a 15 year refinancing option, doing the number crunching is the best method of determining if it is the right choice for your short-term budget requirements, and your long-term.

The Veterans Administration (VA) home loan is one of the most powerful benefits available for active duty military members, Guard and Reserve members, and veterans. If you qualify for a VA loan.

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 · Benefits of a 15-Year Fixed Mortgage: If you are in a good financial place and you are able to comfortably afford a higher monthly payment, a great but less popular option is the 15-Year fixed mortgage. It is exactly like the 30-Year, but the main difference is.

Advantages of a 15-Year or 20-Year Home Loan Buyers who can afford the slightly higher monthly payment associated with a shorter duration mortgage have a number of advantages. Lower interest rates: While both loan types have similar interest rate profiles, the 15-year loan typically offers a lower rate to the 30-year loan.

"You can take advantage of stronger cash flow while you’re working to make the bigger monthly payments that a 15-year mortgage requires and pay off the loan before you retire," Roberge says. "Then, when you do retire, you won’t have to pull as much out of your savings to cover living expenses since your loan will be gone."

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