15-Year vs. 30-Year Fixed-Rate Mortgage*
Since the interest rates are fixed over their lifetimes, these loans come with a degree of certainty – your mortgage payment won’t change month-to-month for the life of your loan. The 15-year and 30-year fixed-rate mortgages are the two most popular loan types for consumers.
Payments on a 30-year fixed-rate-mortgage are stretched out over a longer period of time, so you’ll end up paying more interest over the lifetime of the loan, but your monthly payments will be lower. You may also be able to qualify for a larger loan amount.
The benefit of a 15-year fixed-rate mortgage, then, is that you’ll pay a lot less in interest while paying off your mortgage faster. This will help you build equity in your home quicker. However, the monthly mortgage payment will be higher, so it might be more difficult to qualify for as large a loan amount.
Apply for a Fixed Rate Mortgage
Now that you know about the differences between a 15-year term mortgage and a 30-year term fixed rate mortgage, you’re better able to determine which option works best for your situation. Your WesBanco Mortgage Loan Officer can help you figure out which option is best for you and guide you from application to closing.
*Payment and Annual Percentage Rate (APR) example assumes a credit score of 735, a LTV of 82%, a $210,000 mortgage loan amount, and 30 days to the first payment. The APR for a fixed rate mortgage loan is 3.672% APR. The monthly payment for a 15-year fixed rate term would be $1,519.04. The monthly payment for a 30-year fixed rate term would be $963.24. The APR is accurate as of September 10, 2019. The disclosed payment amount does not include amounts for taxes and insurance premiums; the actual payment obligation will be greater. Approval of the loans will be subject to the bank’s standard underwriting.