The best type of interest rates in the world would be the fixed interest rates. In a fixed interest rate, you will find that the interest rate will not be subject to change even in the event of change in the current economic situation.
This is why you will find that most of the people who will take up mortgages will use the fixed mortgage rates. The rate of interest on the mortgage will depend on the duration of the mortgage.
Most of the people would prefer to go for the 15 year fixed mortgage rates because of the benefits that come with them. The first benefit of this type of rate would be the low rate of interest.
If you choose to take a 15 year mortgage you will find that it has a low interest rate than any mortgage which is more than it.
The rate of interest will be lower due to the fact that just like any other loan, the sooner you pay the lower the interest.
Secondly, 15 year fixed mortgage rates are preferred due to the consistency of the rate of interest. When you take a normal 15 year mortgage, the rate of interest can be able to change according to the economic situation.
In the recent days, you will find that the people who chose a normal mortgage have either lost their houses or are in the brink of losing them. This has been attributed to the global financial crisis.
Those that chose the 15 year fixed mortgage rates on the other hand have nothing to worry about as the rates remained the same during this time.
That is why financial advisors would prefer to tell their clients to pick fixed rates rather than the normal rates.
This security of knowledge that you have would be beneficial in some ways. The first way would be that you will be bale to plan your budget according to the repayments that you are going to make.
Since the rate will not change at any given time, you can be able to plan your finances such that you will have a secure budget.
Peace of mind is another factor that comes to mind since you will not have to worry about the economic situation and its impact on the mortgage rates.
By John Benson