You wish to subscribe a mortgage on 15 years or 180 months? Find out what is the best rate you can benefit from.

15 years is a relatively short term for a home loan. Indeed, most borrowers opt for contracts ranging in duration from 20 to 30 years in order not to pay too high monthly payments. What is the best rate for a 180 month mortgage? Reply.

Why take out a mortgage on 15 years?

Why take out a mortgage on 15 years?

Developments in the market now allow borrowers to take out a 35-year mortgage. However, extending the credit repayment period has many disadvantages. First, the idea of ​​going into debt over such a long period has an extremely strong psychological impact and may seem daunting. Secondly, this implies a much lower credit rate and therefore a higher total cost.

This table shows that the longer the credit period, the higher the cost. In this example, a borrower wants to subscribe a mortgage of 250,000 USD with a personal contribution of 25,000 USD.

 

duration

 

Amount borrowed

 

Rate

 

Interests

15 years

250,000 USD

1.15%

€ 21,987

20 years

250,000 USD

1.35%

€ 34,908

25 years

250,000 USD

1.60%

€ 52,736

Thus, by choosing to borrow over 25 years rather than 15 years or 180 months, the plaintiff will have to pay twice as much interest.

Find the best rate for a mortgage over 15 years

Find the best rate for a mortgage over 15 years

Mortgage rates continue to break records in 2019. Brokers say that if the most competitive rates are reserved for the best profiles, the downward rate trend benefits all borrowers. The best 15-year mortgage rates reached 0.67% at Dumer, 0.69% at Furty Bank, 0.80% at Burko bank and 1.03% at WRD. They may, however, vary according to the borrower’s income, the amount of the contribution and the capital borrowed.

This relatively low level of interest rates is explained by the desire of the EurCen to encourage banks to reinject their liquidity into the economy via credit. Banks therefore prefer to lend even at very low rates rather than paying 0.5% for the deposit of unused cash with the EB. Banks all adopting the same strategy, compete fiercely in the market.

The EB seems willing to maintain its accommodative policy until at least the summer of 2020. To take advantage of these advantageous loan conditions and benefit from the best credit rate over 15 years or 180 months, do not hesitate to compare offers online. The use of a comparator of real estate loans not only saves time, but also saves money. If you wish to benefit from an accompaniment and personalized advice, the recourse to a broker is strongly recommended. This trading professional finds you the best loan offer tailored to your profile and your budget.

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