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Benefits of a 15-Year Fixed Rate Mortgage

This loan is a great choice for the financially savvy customer because it enables you to:

  • Pay a lower interest rate over a shorter time period.
  • Reduce the total amount of interest you pay over the life of the loan.
  • Repay your loan quickly.
  • Refinance up to 95% of your primary home’s value.
  • Buy your primary home with as little as 3% down.
  • Pay your mortgage at any time without prepayment penalties.
  • Enjoy knowing that your payment will not change throughout the life of the loan.

Wondering just how much you’ll save on a 15-year fixed? See our sample loan comparison at the end of this page.

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How a 15-Year Fixed Rate Mortgage Works

When you obtain a 15-year fixed rate loan to buy your home or refinance, you’ll make monthly payments based on the interest rate and principal loan amount.

Because the term of a 15-year mortgage is half that of a traditional 30-year fixed mortgage, you’ll pay significantly less interest over the life of your loan.

However, while the interest rate and total amount of interest you pay will be lower because the 15-year mortgage’s term is shorter, your payments will be higher than they would be with a 30-year fixed rate mortgage.

It’s also important to note that, depending on the size of your down payment (if you’re buying a home) or the amount of equity you have (if you’re refinancing), you may need mortgage insurance.

Sample Loan Comparison Chart

See the chart below to understand just how much you can save with a 15-year fixed rate mortgage and contact us for a quote today.

 

15-Year Fixed Rate vs. 30-Year Fixed Rate
Loan Type 30-Year Fixed 15-Year Fixed
Loan Amount $400,000 $400,000
Rate/APR 4.25% 3.50%
Monthly P&I Payment $1954.44 $2859.53
Total Interest Cost $308,393.36 $114,715.50