15-Year Fixed Mortgages
Pay off your loan sooner and save significant money in interest.
Who Are 15-Year Fixed Loans Best For?
If you want to save money in interest by paying off your loan sooner, a 15-year fixed loan could be the ideal option for you.
The 15-year fixed is great for people who have a solid financial situation and the means to take on larger payments as a way to save significantly over the life of the loan.
How Do 15-Year Fixed Loans Work?
With a 15-year fixed rate loan, you’ll completely pay off your mortgage in just 15 years.
Because your interest rate is locked, your principal and interest payments won’t change, but your taxes and insurance can fluctuate.
How Do I Qualify For A 15-Year Fixed?
- General minimum 3% – 3.5% down payment
- Minimum 580 – 620 qualifying FICO® Score
- Debt-to-income ratio (DTI) of no more than 50%
- 3% – 6% of the purchase price to cover closing costs
15-Year Fixed Mortgage Rates
|Conforming 15 Year Fixed||5.25%||5.742%|
|FHA 15 Year Fixed||5.5%||6.771%|
|VA 15 Year Fixed||5.625%||6.504%|
15-Year Fixed Mortgage Benefits
- You’ll pay off your mortgage faster than with other loans.
- You can pay off your mortgage at any time without prepayment penalties.
- You may be able to avoid mortgage insurance with a down payment of 20% or higher.
- Your interest rate is fixed for the life of the loan, so you don’t have to worry about rising rates.
- You can buy a home with as little as 3% down.
- You can refinance your home for up to 97% of its value.
Mortgage Insurance Requirements
You’ll have to pay primary mortgage insurance (PMI) with your 15-year fixed-rate loan if your down payment is less than 20%.
- This typically costs 5% – 1% of your loan amount per year, spread over 12 payments.
- Once you reach 20% equity in your home, you may be able to request to cancel PMI.
- PMI is often canceled automatically once you reach 22% equity.
Recommended Next Steps
Find The Answers You Need
Visit our Learning Center, where we break down the mortgage process so it’s easier to understand.
Calculate What You Can Afford
Get an estimate on how much home you can afford, the down payment you’ll need and what your monthly payment could be.
Lock Your Rate
With Rocket Mortgage® by Quicken Loans®, start your mortgage application right away by answering just a few basic questions about your goals.