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Should You Switch To A 15-Year Mortgage?

Wednesday, September 21, 2011 - 8:22 AM
From Moneyland | TIME.com
As 30-year fixed mortgage rates have hit historical lows, there’s been one less-publicized corollary: 15-year fixed rates are low, too.

Last week’s 15-year rate was at 3.30 percent, down from 3.33 percent the week before.

If you’re a borrower, that’s even more attractive than the 30-year 4.09 percent.

The “spread” between the two rates — in other words, the degree to which taking a 15-year mortgage is cheaper than taking a 30-year mortgage — is 0.75 percentage points. That’s a big differential — historically, about as good as it gets.

Let’s walk through an example....

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