Explore 15-Year Fixed-Rate Mortgage
15-Year Fixed-Rate Mortgage
The 15-Year Fixed-Rate Mortgage offers borrowers the opportunity to pay off their mortgage in a shorter time frame, leading to significant interest savings over the life of the loan. This option is suitable for individuals who prioritize quicker equity buildup and want to own their homes outright sooner.
Best for:
Individuals, Couples, Families
Property type:
Single Family Home
Townhouse
Condo
Multi-Family Home
Townhouse
Condo
Multi-Family Home
Down payment:
from 3%
Loan Term:
15 Years
Rate type:
Fixed Rate
Loan Limits:
Conforming
Key Benefits
Accelerated Equity
Pay off your mortgage in half the time of a 30-year loan, building equity rapidly.
Pay off your mortgage in half the time of a 30-year loan, building equity rapidly.
Lower Interest Costs
Enjoy lower overall interest payments due to the shorter loan term.
Enjoy lower overall interest payments due to the shorter loan term.
Faster Debt-Free Status
Achieve homeownership without a mortgage sooner, providing peace of mind and financial security.
Achieve homeownership without a mortgage sooner, providing peace of mind and financial security.
Higher Monthly Payments
Prepare for higher monthly payments compared to longer loan terms.
Prepare for higher monthly payments compared to longer loan terms.
Ideal for Long-Term Stability
Suitable for borrowers who plan to stay in their homes for an extended period.
Suitable for borrowers who plan to stay in their homes for an extended period.
Commonly asked questions about 15-Year Fixed-Rate Mortgage
What is a 15-Year Fixed-Rate mortgage?
A 15-Year Fixed-Rate mortgage is a home loan with a fixed interest rate and consistent monthly payments for 15 years.
Who is eligible for a 15-Year Fixed-Rate mortgage?
Eligibility requirements may vary among lenders, but generally, individuals, couples, and families looking to purchase or refinance a primary residence may qualify.
What are the benefits of a 15-Year Fixed-Rate mortgage?
This option allows you to pay off your mortgage faster and accumulate less interest over the life of the loan compared to longer terms.
What credit score is needed to qualify for a 15-Year Fixed-Rate mortgage?
Credit score requirements vary, but a higher score can improve your chances of a favorable interest rate.
Can I make extra payments to pay down my principal faster?
Yes, making extra payments can help you pay off the loan earlier and reduce overall interest costs.
Is a 15-Year Fixed-Rate mortgage suitable for refinancing?
Yes, if you want to reduce your loan term and pay off your mortgage faster, this can be a good option.
What happens if I sell my home before the 15-year term ends?
You'll need to pay off the remaining mortgage balance upon sale, just like with any mortgage.
Are government-backed options available for a 15-Year Fixed-Rate mortgage?
Yes, options like FHA, VA, and USDA loans also offer 15-Year Fixed-Rate programs.
What are the drawbacks of a 15-Year Fixed-Rate mortgage?
Monthly payments may be higher compared to longer terms, which could impact your budget.
Can I use a 15-Year Fixed-Rate mortgage for investment properties?
Typically, 15-Year Fixed-Rate mortgages are designed for primary residences, but check with your lender for specific guidelines.
Can I refinance my existing mortgage into a 15-Year Fixed-Rate mortgage?
Yes, refinancing into a 15-Year Fixed-Rate mortgage can be an option to pay off your loan sooner.
How do I compare offers from different lenders for a 15-Year Fixed-Rate mortgage?
Collect loan estimates and consider interest rates, fees, and overall terms to make an informed decision.
What is the loan limit for a 15-Year Fixed-Rate mortgage?
Loan limits depend on various factors, including the location of the property and the type of loan program you're considering.
Is a 15-Year Fixed-Rate mortgage suitable for first-time homebuyers?
It can be an option for first-time buyers seeking to build equity faster, but it's essential to ensure it fits your financial situation.
Can I switch to a longer term later if needed for financial reasons?
You may be able to refinance into a longer term in the future if it aligns with your financial goals and circumstances.