The 15 year fixed-rate mortgage offers low interest rates — often 0.75% less than the benchmark 30 year fixed — and much lower interest costs over the life of the mortgage.
Because you pay down the principal on a 15 year mortgage more quickly, you also build equity quickly. Your monthly mortgage payments, however, will be higher.
What would be my monthly payment on a 15 year mortgage?
See our mortgage payment calculator to figure out what your 15 year mortgage payment is likely to be.
What is the current 15 year mortgage rate today?
Current 15-year mortgage rates can be in the range of 3.125% to 3.500%, depending on your credit and income. Rates can change every day, so it’s smart to find out what rate you qualify for today.
Frequently Asked Questions
What are the advantages of a 15 year mortgage?
- Pay less interest over the life of your loan
- Interest rates are usually a lot lower than the 30 year mortgage rate
- Build equity and pay off your home loan more quickly
- Your rate is fixed for the life of the loan, even if interest rates go up
- If you need private mortgage insurance (PMI), rates are usually lower for 15 year terms, and the insurance will cancel earlier since you are building equity more quickly
What are the disadvantages of a 15 year mortgage?
- Higher monthly mortgage payments compared to 30 year fixed mortgages
- You will qualify for a lower total loan amount, given your ability to pay, compared to a 30 year fixed
How does the 15 year mortgage work?
After you pay standard closing costs and fees, with a 15 year mortgage you pay a fixed monthly payment that never goes up for the life of the loan. Because of the mortgage’s relatively short term, you pay down the principal more rapidly than a 30 year, steadily building equity in your home. (If necessary you can access this equity by refinancing your home.)
Note that most lenders quote conventional 15 year mortgage rates. If the amount you need to borrow is above a certain limit, you may have to get a jumbo mortgage loan. That limit varies from county to county
How does a 15 year mortgage compare to a 30 year mortgage?
- A 30 year mortgage has lower monthly payments, allowing you afford more house for a given payment. The lower monthly payments also means more cash for you to spend or invest on a monthly basis. However, you pay much more in interest over the life of the loan and build equity more slowly. Learn more about 30 year mortgages
- A 15 year mortgage lets your pay less interest over the life of the loan and build equity faster. 15 year mortgage interest rates are also usually lower. Monthly payments are likely to be higher, however, and you’ll be able to afford less house for a given monthly payment.
Why trust Newfi Lending with your 15 year mortgage?
Newfi is a direct lender, not a broker, so we can make lending decisions fast and at low interest rates. We’ve earned a five-star customer satisfaction rating from LendingTree for our low rates, fast processing, and excellent customer service. Give us a call at (888) 316-3934 and see just how friendly we are!