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15 Year Fixed Mortgage
Build equity faster and save thousands in interest.
Overview
A 15-year fixed-rate mortgage lets you own your home free and clear in half the time of a traditional 30-year loan. With lower interest rates and dramatically less total interest paid, this is the smart choice for buyers who can afford higher monthly payments.
Key Benefits
- ◎ Lower interest rates than 30-year mortgages
- ◎ Build home equity at an accelerated pace
- ◎ Pay significantly less total interest over the loan life
- ◎ Own your home outright in just 15 years
- ◎ Fixed rate provides payment stability
- ◎ Ideal for refinancing to shorten your term
The Power of a 15-Year Term
A 15-year fixed mortgage typically offers interest rates 0.25% to 0.75% lower than a comparable 30-year loan. Combined with the shorter amortization period, you can save tens of thousands — sometimes over $100,000 — in total interest over the life of your loan.
Is a 15-Year Mortgage Right for You?
This option works best for borrowers with strong income, those looking to refinance an existing mortgage, or buyers approaching retirement who want to eliminate their mortgage payment. Monthly payments are higher than a 30-year loan, so your debt-to-income ratio needs to support the larger payment.
Comparing 15-Year vs. 30-Year
On a $300,000 loan, a 15-year mortgage at 6% results in monthly payments of approximately $2,531 versus $1,799 for a 30-year at 6.5%. However, total interest paid on the 15-year is about $155,000 compared to nearly $348,000 on the 30-year — a savings of over $190,000.
Frequently Asked Questions
Common questions about 15 year fixed mortgage
Are 15-year mortgage rates really lower?
Yes. 15-year fixed mortgages typically carry interest rates 0.25% to 0.75% lower than 30-year loans. Lenders take on less risk with shorter loan terms, and those savings are passed on to you.
Can I refinance from a 30-year to a 15-year mortgage?
Absolutely. Many homeowners refinance to a 15-year mortgage to pay off their home faster and reduce total interest costs. We’ll help you determine if the math makes sense for your situation.
What are the qualification requirements?
You’ll generally need a credit score of 620 or higher, a debt-to-income ratio below 43%, and steady income documentation. Because monthly payments are higher, lenders want to confirm you can comfortably afford them.
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