15-Year Fixed-Rate Mortgage

Pay off your loan sooner and save a significant amount of money in interest.

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15-Year Fixed Mortgage Rates

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What To Know About 15-Year Fixed-Rate Mortgages

Who Are 15-Year Fixed-Rate Loans Best For?

A 15-year fixed-rate mortgage might be the right option for you if:

  • You want to save money by paying off your loan sooner.
  • You can afford a higher monthly payment.
  • You want a predictable monthly payment.

How Do 15-Year Fixed-Rate Loans Work?

  • You pay off your loan over 15 years.
  • Your interest rate and monthly payment remain the same.
  • Your monthly payment will be higher and your interest rate may be lower than with a 30-year fixed-rate mortgage.
  • You’ll pay less overall interest for your loan.

How Do I Qualify For A 15-Year Fixed-Rate Loan?

  • Minimum 3% down payment
  • Minimum credit score of 580 to 620, depending on loan type
  • Debt-to-income ratio no higher than 50%
  • Must pay closing costs, usually 2% to 5% of the purchase price

15-Year Fixed-Rate Loan Benefits

  • Pay off your mortgage faster.
  • Pay less interest on your loan and save money.
  • Your interest rate and monthly payment don’t change.
  • You can buy a home with a conventional loan for as little as 3% down.
  • You don’t have to pay for PMI if your down payment is at least 20%.

FHA Property Requirements

Mortgage insurance protects the lender if you can’t repay your loan. You’ll need to purchase mortgage insurance for the following loan types:
  • Conventional loan with a down payment of less than 20%
  • FHA loan
  • USDA loan

Frequently Asked Questions

Still have questions about 15-year fixed-rate mortgages? We’ve got answers.

A 15-year fixed-rate mortgage typically comes with a lower interest rate, so your loan will cost less overall. You’ll also pay off your home loan in half the time. However, be sure you can afford a higher monthly payment.

With a fixed-rate mortgage, your payment for principal and interest will not change. However, changes to the amount you pay for homeowners insurance and property taxes can affect your monthly payment.

Even though you’ll have a higher monthly payment, your interest rate may be lower by as much as a full percentage point. Plus, you’ll be borrowing money for fewer years, so there’s less time for interest to grow.

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