VARbuzz: More borrowers look to 15-year fixed mortgages
Only about 60 percent of homebuyers in Q4 2011 took out 30-year, fixed-rate loans; three years ago, the figure was closer to 90 percent. Instead, they’re opting more and more for 15- or 20-year loans instead. (A quarter of people refinancing from 30-year loans are opting for 15-year ones instead.)
That’s despite the fact that the typical payment on a 15-year loan is 50 percent higher than on a 30-year mortgage, because the interest rate is significantly lower — 3.41% for a 15-year mortgage today, vs. 4.05% for a 30-year.