A 15 Year fixed rate mortgage is very similar to the 30 Year fixed rate mortgage except the rates are somewhat lower and the term is across 15 years as opposed to 30 years. The advantages of the 15 Year fixed rate are the following:
Its a fixed rate!
Fully amortized, or paid off after 15 years.
The term is 15 years to within a few years you will be paying more toward the principle than the interest.
One of the disadvantages could be the monthly payment due to the fact that the payment is across a 15 year term instead of a 30 year term. This disadvantage can be offset by the speed in which the principal balance reduces.
Interested in a 15 Year fixed rate?
If so, please contact us now and speak with our Professional Mortgage staff.
15-Year Fixed Mortgage — Own Your Home Faster
Want to pay off your home sooner? A 15-year fixed mortgage could be a smart choice. You’ll make the same payment each month. The interest rate stays locked in for the full term. So, no surprises. And best of all? You’ll save a lot of interest over time.
Who Should Opt for a 15-Year Mortgage?
This mortgage is most effective if:
- You want to own your home faster
- You can afford a higher monthly payment
- You’re refinancing and near retirement
- You want to pay less total interest
It is best suited for individuals with fixed incomes and long-term horizons.
Pros and Cons
Let’s keep it simple.
Pros:
- You pay off your home quicker
- You save money on interest
- Your rate never changes
- You build equity fast
Cons:
- Monthly payments are higher
- It might stretch your budget
- Harder to qualify if income is tight
Think about your goals and your comfort with monthly payments.
How to Qualify
Lenders will check a few things before saying yes:
- Your credit score
- Your job and income
- Your other debts
- Your down payment
- The value of the home
If you earn enough and have good credit, qualifying is easier.
What You’ll Need to Apply
Here’s what most lenders ask for:
- A photo ID
- Proof of income (like pay stubs or tax returns)
- Bank statements
- Your credit report
- A list of your debts
Having these ready speeds up the process.
15-Year vs. 30-Year Mortgage: What’s the Difference?
The main difference is time. One lasts 15 years. The other lasts 30. But there’s more.
| Feature | 15-Year Loan | 30-Year Loan |
|---|---|---|
| Loan Term | 15 years | 30 years |
| Monthly Payment | Higher | Lower |
| Total Interest Less | Less | More |
| Interest Rate | Usually lower | Slightly higher |
| Payoff Speed | Fast | Slow |
A 15-year mortgage will get you to build home equity sooner. A 30-year loan provides you more flexibility in your monthly budget.
FAQ
Is the rate fixed the whole time?
Yes. It never changes. You get the same rate every month for 15 years.
Will I pay more each month?
Most likely, yes. But you’ll save a lot over time.
Do I need a big down payment?
Not always. Some lenders accept 5% down. But 20% can help you avoid extra fees.
Ready to Talk?
Still not sure if a 15-year loan fits your plans? That’s okay. We’re here to help. We’ll explain your options in plain terms. No pressure. No confusion. Just honest guidance.