What Is a 15-Year Fixed Mortgage?

In this article:

• What Is a 15-Year Fixed Mortgage?
• Advantages of a 15-Year Fixed Mortgage
• Disadvantages of a 15-Year Fixed Mortgage
• Current 15-Year Fixed Rates

What is a 15-Year Fixed Mortgage?

A 15-year fixed mortgage is a mortgage that has a specific, fixed rate of interest that does not change for 15 years.

If you choose a 15-year fixed mortgage, your monthly payment will be the same every month for 15 years. However, the breakdown of how much of your mortgage payment goes to principal and how much goes to interest will shift throughout the lifetime of the loan. Your payments will be spread over 15 years, with the interest payments making up the majority of the payment at the beginning, and then principal paid off toward the end of the term.

15-year fixed mortgages have increased in popularity recently. When rates are low and you can afford the higher monthly payment, a 15-year fixed mortgage allows you to pay off your mortgage earlier, build equity at a faster rate and save thousands in interest.

Advantages of a 15-Year Fixed Mortgage

• Less mortgage insurance compared with a 30-year fixed mortgage if you are putting less than 20 percent down.
• Would be an attractive option if you value paying off your loan quickly and owning your home outright.
• Would like to have your mortgage paid off before a big life event such as sending your kid to college, retiring, etc.
• 15-year rates are lower than 30-year fixed rates.
• Great to lock in safe, consistent and stable rate if rates are low.
• Pay off mortgage completely in a relatively short period of time. Some people don’t like owing anyone money.
• Build up equity at a faster rate than with a longer loan term.
• Save lots of money on interest because the lifetime of the loan is shorter.

Check today’s mortgage rates on Zillow

Disadvantages of a 15-Year Fixed Mortgage

• High monthly payment means that you have less cash for emergencies, if you lose your job, etc.
• High monthly payment could prevent you from investing or diversifying your investments more.
• Less mortgage interest to deduct on your taxes.
• With rising cost of inflation, your income and other expenses will likely rise, but your mortgage payment won’t, so essentially it’s cheaper to get a 30-year fixed loan.
• Equity is tied up in the house, and you’d have to sell or get a home equity loan to get money out of your house investment.

Current 15-Year Fixed Rates

Below are today’s average 15-year fixed interest rates. You can also use Zillow to get customized interest rates for your particular situation. Enter your loan details and you'll get free quotes from multiple lenders, anonymously.

Next: Shop for 15-year fixed mortgage rates on Zillow.