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Maryland 15 Year Mortgage Rate Learning Center.
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A standard Maryland 15 year mortgage has term of 180 months.
Most 15 year term mortgage products have lower interest
rates than a 30 year mortgage. The reason why mortgage lenders
offer lower rates are that it is less of a risk (because of the shorter
payoff time). There may also be more capital to lend because
many mortgage investors prefer to get a faster return on
investment ( 15 year return as opposed to a 30 year return).
Most 15 year term mortgage products have lower interest
rates than a 30 year mortgage. The reason why mortgage lenders
offer lower rates are that it is less of a risk (because of the shorter
payoff time). There may also be more capital to lend because
many mortgage investors prefer to get a faster return on
investment ( 15 year return as opposed to a 30 year return).
TIP - Be careful when shopping rates and mortgages, the rate
on a 15 year mortgage, may sound more attractive than the
longer term loan mortgage rate but compare the payments
and understand that they will be dramatically higher on the 15 year.
longer term loan mortgage rate but compare the payments
and understand that they will be dramatically higher on the 15 year.
Example of a 15 year vs a 30 year termed home loan:
A 15 year $210,00 mortgage principle and interest
versus a 30 year $210,000 mortgage.
If the going rate on the 30 year mortgage is 6.25% then the
rates on the 15 year will tend to be 3/7 of a percent lower.
So we will use the rates of 6.25 and 5.5 for the example P&I.
15 year term
rate 5.5
P&I = $1715
30 year term
rate 6.25
P&I =$ 1293
So as can be seen in the example above the rate on the 15 year
mortgage might seem more attractive but the payments are
dramatically higher.
Most borrowers’ who get the 15 year loan is interested
in paying off the loan as soon as possible. They are also using it
to refinance after they have gained at least 20% equity in the
Home.
(refinancing at that LTV, 80%, will usually remove
mortgage insurance.)
mortgage insurance.)
If you believe you will sell the home within
several years it may be a better idea to get the longer term rate
mortgage and use the monthly savings to send into the mortgage
lender as monthly "extra principle" payment. This way the higher
payment on the 15 year mortgage becomes optional as opposed
to required . The extra principle payment will shorten the total
length of the 30 year mortgage. Why do this? If there is a tight
month on income you can avoid the higher monthly expense
and not send in the extra money.
Maryland 15 year
Mortgage rates
are usually .25%
to .375% lower
than a Maryland
30 year mortgage
rate. You will find
that as a loan term
is shorter, the lender
will usually offer
a lower Maryland
Mortgage 15 year
rate.
This, of course,
depends on other
qualifying Factors.
Mortgage rates
are usually .25%
to .375% lower
than a Maryland
30 year mortgage
rate. You will find
that as a loan term
is shorter, the lender
will usually offer
a lower Maryland
Mortgage 15 year
rate.
This, of course,
depends on other
qualifying Factors.
Maryland 15 year
Mortgage rate
quick tip
Mortgage rate
quick tip
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