15-Year Fixed Mortgage

A 15 Year fixed rate mortgage is very similar to the 30 Year fixed rate mortgage except the rates are somewhat lower and the term is across 15 years as opposed to 30 years.  The advantages of the 15 Year fixed rate are the following:

Its a fixed rate!

Fully amortized, or paid off after 15 years.

The term is 15 years to within a few years you will be paying more toward the principle than the interest.

One of the disadvantages could be the monthly payment due to the fact that the payment is across a 15 year term instead of a 30 year term.  This disadvantage can be offset by the speed in which the principal balance reduces.