Fifteen-Year Mortgage

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Fifteen-Year Mortgage

A mortgage with a maturity of 15 years. A 15-year mortgage usually has a higher payment than a 30-year mortgage because one pays a higher portion of the principal each month.
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The fee on 15-year mortgages rose to 0.5 point from 0.4 point last week.
The fee on 15-year mortgages was unchanged at 0.4 point.
Before you opt for a 30-year mortgage over a 15-year one in order to secure lower monthly payments, learn how much there is to like about 15-year mortgages.
The share for 15-year mortgages was 16.8 percent, according to the Ellie Mae report.
Leading the pack were 30-year fixed rate mortgages at 38% followed by 15-year mortgages at 19%.
Rowan is frustrated to see that many African Americans are still buying houses on a 30-year loan while our white counterparts are getting 15-year mortgages. She also points out that many African Americans stay in their homes for 20 or 30 years, or even a lifetime, while our white counterparts are buying and selling four or five houses and making money from their investments.
"There's still room to refinance" with ARM, hybrid ARM, and 15-year mortgages, all of which offer lower interest rates than 30-year loans.
Some mortgage companies report that nearly half their refinancing activity involves 15-year mortgages. Using the same facts as the earlier example, Table 2 shows the new payments when refinancing over 15 years.
"On the consumer side, most people refinancing their old 30-year mortgages are moving to 10- or 15-year mortgages, thus lowering their rates while keeping their payments level," he said.
Georgia's banks had better average rates on their mortgages at 4.66% on 15-year mortgages and 5.07% on 30-year mortgages.
For 15-year mortgages, the average interest rate was 4.33 percent, down from 4.34 percent one week ago.
Table 4 compares interest payments and the remaining loan balance of 30- and 15-year mortgages (for the first 15 years) for an $80,000 and a $160,000 mortgage.