15 Year Mortgage Rates

15 year mortgage rates

15 years seems like a long time. However, in the mortgage world, it’s a fairly standard length for a term. By locking into a 15 year mortgage rate now, you may be able to take advantage of extraordinarily low mortgage rates. With that in mind, here are some of the most important things to know about 15 year mortgage rates. Keep these in mind when searching for your mortgage and you can be assured of finding a great mortgage rate.

Why do small changes in 15 year mortgage rates matter?

When you look at the 15 year mortgage rate market, you may wonder why the charts illustrate minor differences in rates. For example, over a three month period, 15 year mortgage rates may change from 3.72% to 3.66%. While this is only six one-hundredths of a percentage point, it has a significant effect over the lifetime of your loan. Put simply, these percentage points add up over the years, and, depending on the value of your mortgage, they could end up costing you thousands of dollars in extra interest.

To prevent this from happening to you, it’s important to monitor the trends in the 15 year mortgage rates market, which will allow you to see where the rate once was compared to now. These charts could give you an idea of where the rate is headed.

How can I get the best possible 15 year mortgage rates?

Obviously, the lower your mortgage rate is, the better off you will be. But how can you get the best possible loan? The best way to do this is to time the market, which can be very difficult. However, even if you’re off by a few percentage points, the fact that you have done research will likely pay off with lower interest rates in the future.

It is equally as important to understand what causes fluctuations in mortgage prices. Essentially, 15 year mortgage rates are based on the price of a specific kind of bond. As more and more people buy these bonds, the cost of borrowing falls. People generally buy bonds when the economy is doing poorly, as a way to ensure themselves against future losses. Put simply, if you realize some of the basic factors behind the market’s performance, then you stand a better chance of timing the best 15 year mortgage rate.

15 year fixed rate mortgageOn the other hand, many people who lock into a 15 year fixed rate mortgage may not want to worry about the cost of borrowing at all. Instead, they like today’s current mortgage rate, and would like to see the same interest rate on their monthly bill over the next fifteen years. If that is the case, then the change of a few percentage points may not matter too much. Instead, locking it in now and not worrying about it for the next fifteen years could be worth more to you then the few hundred dollars you would save by worrying about the market, or by refinancing your loan after a set period of time.

With that in mind, the decision to look for 15 year mortgage rates is entirely up to you. If you want security and stability throughout the near future, then this may be your best option. Alternatively, if you enjoy taking risks and like flexibility in your financial situation, then you may want to look at other options.