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The 15-year mortgage, though not as popular as the ubiquitous 30-year mortgage, is a solid money-saving option for borrowers who can afford a larger monthly payment.
Because the terms are shorter and 15-year mortgage rates are lower than 30-year rates, you could potentially save hundreds of thousands of dollars over the life of the loan by opting for a 15-year fixed-rate mortgage.
15-year mortgage rates today
Check out the latest rates to see how today's 15-year mortgage rates and 15-year refinance rates compare.
15-year mortgage rate trends
Here are the lowest 15-year fixed mortgage rates each year, from 2012 to 2022:
During the pandemic, mortgage rates hit historic lows, and 15-year mortgage rates neared 2%. But they increased dramatically in 2022, and they've continued to rise for most of 2023. In October, average 15-year mortgage rates surpassed 7% for the first time in nearly 23 years, according to Freddie Mac.
Fortunately, rates have since started falling. In November, average 15-year fixed mortgage rates dropped to an average of 6.45%, which is down 23 basis points from the previous month's average, according to Zillow data. They dropped even further in recent weeks.
Will mortgage rates go down? 5 reasons you shouldn't wait for rates to drop>>
15-year fixed-rate mortgage details
Fixed-rate mortgages lock in your interest rate for the entire life of your loan, and they come in a variety of different term lengths. A 30-year is the most common term length for new mortgages, but many lenders offer 15-year terms, too.
A 15-year fixed mortgage keeps your rate the same until you either make your final payment at the end of the 15 years or you sell or refinance.
Is a 15-year fixed-rate mortgage a good deal?
A 15-year fixed mortgage helps you save money on interest over the long term, which means it's a good deal if you're looking to keep your overall costs down. But these mortgages aren't for everyone, especially if you're looking to keep your monthly payment as low as possible.
Average 15-year rates are lower than 30-year mortgage rates, because you're signing up for a shorter term. That's the general rule: The shorter your fixed-rate term, the lower the rate. You'll also pay less in interest over the years with a shorter term, because you'll repay the mortgage sooner.
But your monthly payments will be higher with a 15-year mortgage than with a 30-year mortgage or 30-year mortgage refinance. You're paying off the same amount in half the time, so you'll pay more each month.
The pros and cons of 15-year fixed-rate mortgages
Compare 15-year fixed-rate mortgages to 30-year fixed-rate mortgages
To see how much you could save overall with a 15-year fixed-rate mortgage, take a look at this example for a $250,000 loan, using average interest rates for the last week of November 2023, according to Freddie Mac data:
| Type of mortgage | 15-year fixed-rate | 30-year fixed-rate |
| Interest rate | 6.56% | 7.22% |
| Monthly payment | $2,186 | $1,700 |
| Total interest paid | $143,484 | $362,128 |
By the end of your term with the 30-year loan, you'll have paid back more than double what you initially borrowed when you add interest to your original loan amount. But with the 15-year mortgage, your total interest costs amount to less than half of the loan amount.
How to get a good 15-year fixed mortgage rate
Lenders take your finances into consideration when determining an interest rate. The better your financial situation is, the lower your rate will be.
Lenders look at three main factors: down payment, credit score, and debt-to-income ratio.
- Down payment: Depending on which type of mortgage you take out, a lender might require anywhere from 0% to 20% for a down payment. But the more you have for a down payment, the lower your rate will likely be.
- Credit score: Many mortgages require at least a 620 credit score, and an FHA loan lets you get a mortgage with a 580 score. But if you can get your score above the minimum requirement, you'll probably land a better interest rate. To improve your score, try making payments on time, paying down debts, and letting your credit age.
- Debt-to-income ratio: Your DTI ratio is the amount you pay toward debts each month in relation to your monthly income. You generally can't get a mortgage with a DTI above 50%, and you can get a lower mortgage rate with a lower ratio. To decrease your DTI ratio, you either need to pay down debts or consider ways to increase your income.
You should be able to get a low 15-year fixed rate with a sizeable down payment, excellent credit score, and low DTI ratio.
Use our free mortgage calculator to see how today's 30-year rates will affect your monthly payments and long-term finances.
You can apply for preapproval with a lender to get an idea of the rate you'll pay. Just be sure to pay attention to both the rate and the mortgage APR. The APR shows you the full cost of borrowing, not just the interest rate. A mortgage's APR takes into account things like points and fees paid to the lender in addition to your interest rate.
Is a 15-year fixed mortgage a good fit for you?
You might like a 15-year fixed mortgage if you plan to stay in your home for a long time and want to be aggressive about paying off your mortgage.
If you want to move in the next few years, you might prefer a different term. A 30-year fixed rate will come with lower monthly payments. An adjustable-rate mortgage could also be good — you could lock in a lower rate during the intro rate period, then move or refinance before your rate increases.
15-year mortgage rates frequently asked questions
What are 15-year mortgage rates at right now?
Average 15-year mortgage rates have been trending down in recent weeks, and they've recently been hovering near 6%.
Is getting a 15-year mortgage a good idea?
The main benefits of getting a 15-year mortgage are a lower interest rate, less interest paid overall, and building equity faster. But the trade-off is that you'll have a larger monthly payment due to the shorter term.
What are current 15-year and 30-year mortgage rates?
Recently, 30-year mortgage rates have often been near 8%. This is significantly higher than 15-year rates, which have been closer to 7%.
Does a 15-year mortgage have less interest?
Average mortgage rates are lower on 15-year mortgages compared to loans with longer terms. You'll also pay less interest because the term is shorter, so you'll spend less time accruing interest.