Best interest Rate for 15 year Fixed MortgageThe best interest rate for a 15-year fixed-rate mortgage
If you buy a 15-year fixed-rate mortgage, the interest rate remains the same throughout the term of the mortgage. You will receive a one-month mortgage on the basis of the interest rate you are negotiating with your creditor and the structure of your mortgage is such that it will be paid off by the end of the 15-year term.
Usually this is the quickest fixed interest rate provided by the lender and allows you to repay your mortgage more quickly and earn less interest than with a longer duration one. Though, the short duration means that your money will be higher, so consider whether you can buy it. Interest rates that you will be paying over your 15-year mortgage life vary depending on your interest rate.
Let's say you buy a house for $220,000 and make a down pay of $20,000, resulting in a mortgage of $200,000. When the interest rate on your mortgage is 4.0 per cent, your total amount paid per month is $1,479.38. After deducting the initial amount of DEM 200 000, interest of DEM 66 288.40 remains.
Reducing the interest rate by 1 point can cut you back on interest by tens of millions of dollars over the same 15 year term. Following on from the above example, if the interest rate on your mortgage were 3 per cent instead of 4 per cent, your monthly payout would be $1,381.16 or $98.22 less per month. Your interest rate on your mortgage would be 3 per cent instead of 4 per cent. Over 15 years, your aggregate payout would be $248,608.80 with a combined interest rate of $48,608.80.
This is $17,679.60 in interest rate cuts versus the 4 per cent interest rate. A further way to view your monetary saving is to calculate the amount by which your monetary payments are reduced. For the above example, a one point decrease from 4 to 3 per cent means a $98.22 or nearly 6.6 per cent decrease in your total per month payments ($98.22 split by $1,479.38).
For example, if the initial interest rate were higher - 8 per cent for example - this same $200,000 mortgage would lead to a $1,911.30 per annum payout. You' d be paying $1,797.66 if the interest rate was 1 point lower. This means you would be saving $113.64 a million a months, a 5.9 per cent cut.
There are a number of mortgage computers available on-line. Enter the house value, your down pay and interest rate, the duration of the credit and the computer will tell you what the initial amount would be.