15-Year Fixed Mortgage Rates

About 15-year fixed loans

A 15-year fixed carries a lower rate than a 30-year — typically half a point to three-quarters of a point less — and halves the term. The combined effect on total interest is dramatic: usually less than half what the same loan costs over thirty years.

The cost is the monthly payment, which runs roughly 40 to 50 percent higher. That payment is a fixed obligation for fifteen years, and it reduces the cash you have available for retirement contributions, emergencies and everything else.

Rate versus APR

The interest rate sets your monthly payment. The APR folds in points, lender fees and any mortgage insurance, which makes it the right number for comparing two offers. A lower rate paired with higher fees often costs more over the life of the loan.

Frequently asked questions

Is a 15-year mortgage better than a 30-year?

It is cheaper in total interest and builds equity far faster. It is worse for monthly flexibility. A common middle path is taking the 30-year for the lower required payment and voluntarily paying it down faster, which gives most of the benefit while keeping the option to stop.

Do 15-year loans have lower rates?

Yes. Lenders take on less duration risk over a shorter term and price accordingly. The gap is usually 0.5 to 0.75 percentage points.