Best: When interest rates are low, and you want to pay off your mortgage faster.
15-Year Fixed Mortgage
A 15-year mortgage is appealing to borrowers who want to pay their loan off ASAP. For the lowest rates, you’ll need a 740+ credit score.
With rates at historical lows, a 15-year term is much more affordable. Not only do you pay your loan off faster, but you also pay less interest over the life of the loan.
Besides a shorter term, this type of fixed mortgage gives you peace of mind that your payment will remain the same (unless your taxes or insurance change).
Are 15-year fixed mortgages popular?
Yes, this type of mortgage is especially popular with borrowers planning on retiring within the next 15 years.
Advantages of a 15-Year Fixed Mortgage
- Affordable payments – when rates are low, payments can be very affordable.
- Instant savings – you’ll be building your equity every month. Consider it forced savings.
- Easier retirement – if you’d like to retire without a mortgage, get a 15-year term.
When is a 15-year fixed a good idea?
When rates are low, these loans are an outstanding value.
When is a 15-year fixed a bad idea?
If your budget is tight, you might want to get a lower 30-year term instead of a shorter 15-year term — especially when rates are high.
Homestead is a top lender of 15-year fixed-rate mortgage loans for purchasing and refinancing. Our rates are some of the lowest in the states we serve. Our loan advisors provide excellent service, as you can tell from our reviews. Plus, we close fast!
- Andros Ioakimides on AuthenticityGet a Free Quote →