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Virginia Association of Realtors » VARbuzz: More borrowers look to 15-year fixed mortgages »

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 imageago, 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.

Click here to read more at The Mortgage Reports.