15-Year Fixed

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The 15-year fixed mortgage is a popular choice among homeowners who want to pay off their loan in a relatively short time while locking in an interest rate that remains unchanged for the life of the loan. This guide will cover everything you need to know about 15-year fixed mortgages, including their pros and cons, how to qualify, and comparisons with other mortgage options.

Interest Rates

One of the most attractive features of a 15-year fixed mortgage is the generally lower interest rate compared to longer-term loans like the 30-year fixed mortgage. Lenders see shorter-term loans as less risky, so they often offer better rates.

Pros of a 15-Year Fixed Mortgage

  1. Lower Interest Rates: As mentioned, one of the primary advantages is the lower interest rate.
  2. Predictable Payments: Your monthly mortgage payment will remain the same for 15 years.
  3. Build Equity Faster: With a shorter loan term, you’ll build home equity more quickly.
  4. Less Interest Paid Over Life of Loan: You’ll end up paying significantly less in total interest.
  5. Quicker Ownership: You’ll own your home outright in half the time compared to a 30-year mortgage.

Cons of a 15-Year Fixed Mortgage

  1. Higher Monthly Payments: Because you’re paying off the loan faster, your monthly payments will be higher.
  2. Less Liquidity: The higher monthly payment could stretch your budget, leaving less room for other investments or expenses.
  3. Opportunity Cost: You may miss out on potential investment opportunities that offer higher returns.

Qualifying for a 15-Year Fixed Mortgage

To qualify for a 15-year fixed mortgage, you’ll generally need a good credit score (often 620 or higher), a stable income, and a debt-to-income ratio under 43%. Lenders will also consider your employment history, assets, and other liabilities.

Comparing 15-Year and 30-Year Fixed Mortgages

While the 30-year mortgage has lower monthly payments, you’ll pay more in interest over the life of the loan. The 15-year mortgage, on the other hand, will have higher monthly payments but allow you to save on interest and pay off your home much faster.

Should You Refinance to a 15-Year Mortgage?

If you currently have a mortgage with a higher interest rate or longer term, refinancing to a 15-year fixed mortgage can be a smart move if you can afford the higher monthly payments and want to build equity faster.


A 15-year fixed mortgage can be an excellent option for those looking to own their homes quickly and save on interest. However, it’s crucial to assess your financial situation carefully to ensure that the higher monthly payments are manageable for you.


A 15-year fixed mortgage is a home loan with a fixed interest rate and a 15-year repayment term. The borrower pays the same amount monthly for the duration of the loan.

Monthly payments on a 15-year fixed mortgage are higher than those on a 30-year fixed mortgage because the loan balance is repaid in half the time. However, the total interest paid over the life of the loan is significantly less.

Interest rates for a 15-year fixed mortgage are typically lower than those for a 30-year fixed mortgage and adjustable-rate mortgages (ARMs), but this can vary based on market conditions.

Yes, you can refinance from a 30-year to a 15-year fixed mortgage. This can help you pay off your home faster and save on interest, but your monthly payments will be higher.

This depends on your loan agreement. Some mortgages have prepayment penalties, while others do not. You should review your mortgage agreement or speak with your lender to determine if there are any penalties for early repayment.

Lenders typically require a credit score of at least 620 to qualify for a 15-year fixed mortgage, but a higher score can help you secure a lower interest rate.

The maximum loan amount depends on the lender and your financial situation, including your income, debts, and credit score. It also depends on the conforming loan limits set by the Federal Housing Finance Agency, which can vary by location.

If you plan to move within a few years, a 15-year fixed mortgage might not be the best option since you won’t have much time to take advantage of the lower interest rate and will have higher monthly payments. A shorter-term mortgage or an ARM might be a better fit.

A larger down payment can reduce your loan amount, resulting in lower monthly payments and potentially a lower interest rate. However, you can still get a 15-year fixed mortgage with a smaller down payment, though you might have to pay private mortgage insurance (PMI) until you have 20% equity in your home.

You will typically need to provide proof of income (such as pay stubs or tax returns), proof of assets (such as bank statements), credit history, employment verification, and information about the property you wish to purchase. The exact requirements can vary by lender.

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