The cons to consider when applying for the 15 year fixed rate mortgage in El Paso
The El Paso lending scene has very many mortgage loans that you could apply for in case you need funds to purchase a home. Nonetheless, you will need to choose carefully on the one to apply for, in order to avoid applying for a mortgage that does not rhyme with your needs. The 15 year fixed rate is one of the most popular mortgage among homebuyers in El Paso. This is because the mortgage loan attracts low interest rates, enables you to build home equity faster, and charges less total interest rates. Nonetheless, the mortgage does not lack its dark sides and that is why this article will outline some of the cons that you need to consider when applying for the 15 year fixed rate mortgage. Demands high monthly installments When servicing your mortgage loan, you are required to do so in monthly installments which include paying off the principal amount and the interest rates that it attracts. One of the factors that determine how much you will pay as monthly installments is the number of years that you have to clear the mortgage. The 15 year fixed rate mortgage gives you 15 years to have fully serviced the mortgage. This is a very short time as compared to other mortgages and that is the reason it demands high monthly installments. Makes it hard to save Whenever you apply for the 15 year fixed rate mortgage, you will automatically put your finances in strain due to the high monthly installments. That is the reason why it is very hard to save while you are servicing the mortgage loan, thus curtailing your dreams. Nonetheless, the financial strain is felt for a short time as the mortgage loan gives you 15 years to have serviced it. You can therefore sacrifice your savings for the 15 short years, after which you will own a home and you can start saving again in order to meet your needs and goals. Has a shorter repayment period While other mortgages provide for 30 years to service the loan, the 15 year fixed rate mortgage provides for 15 years. This in turn goes a long way in straining your finances, as you must ensure that you service the mortgage within the specified time, failure to which you will be regarded as a defaulter. The shorter repayment period can be a blessing or a curse depending on your financial health, as you will own your home in no time. However, the shorter repayment period may ruin your financial health by straining you for the 15 years, which is not a short time. |
Mortgage Rates El Paso
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