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15-year fixed mortgage15-year fixed mortgages
A 15-year fixed-rate mortgage keeps the same rate and principal & interest payment for 15 years. Rates are usually lower than a 30-year, you build equity much faster, and you can save a large amount of total interest. The trade-off is a higher monthly payment.
NMLS #1660690 · Reviewed by UMortgage+
What it is and who it fits
- A fixed-rate loan repaid in 180 monthly payments, for purchase or refinance
- Buyers with strong, stable income who can carry a higher payment
- Homeowners refinancing to pay off sooner, such as moving from a 30-year with 20+ years left
- Borrowers planning for retirement or a debt-free home
Who should look elsewhere
- Buyers stretching to qualify, where the higher payment raises DTI too far
- Anyone who needs monthly cash-flow cushion for savings, kids, or a business
- Borrowers who would rather invest the difference and prepay a 30-year by choice
Pros and cons
Pros
- Usually a lower rate than a 30-year fixed
- Much faster equity build
- Large total interest savings
- Payment never changes: no rate risk
Cons
- Higher monthly payment
- Can reduce how much home you qualify for
- Less monthly flexibility if income changes
- Refinance closing costs may offset savings if you move soon
15-year vs. 30-year fixed
| Feature | 15-year fixed | 30-year fixed |
|---|---|---|
| Monthly payment | Higher | Lower |
| Typical rate | Usually lower | Usually higher |
| Equity build | Fast: more principal from month one | Slower early on |
| Total interest | Much less over the life of the loan | Much more if kept to term |
| Budget flexibility | Less room for other goals | More room; extra payments optional |
| Qualifying | Higher payment can raise DTI | Lower payment helps qualify for more home |
General comparison for education. Pricing differences between terms vary by market and scenario.
Example: $400,000 loan, 15-year vs. 30-year
| Sample | 15-year fixed | 30-year fixed |
|---|---|---|
| Loan amount | $400,000 | $400,000 |
| Sample note rate (placeholder) | 5.875% | 6.5% |
| Principal & interest / month | $3,348 | $2,528 |
| Total interest over full term | $202,725 | $510,178 |
In this sample, the 15-year payment is about $820 more per month, but total interest is roughly $307,453 less if each loan is kept to term. Payments exclude taxes, insurance, HOA, and mortgage insurance.
Run your own numbers in the payment calculator.
Rates shown are placeholders for illustration only, not today's rates. Not a rate quote, APR disclosure, or commitment to lend. Actual rates, points, and payments depend on credit, occupancy, property, lock period, and market conditions on the day you lock. Ask a loan officer for a personalized Loan Estimate.
Frequently asked questions
Is a 15-year mortgage rate lower than a 30-year?
Usually, yes. Lenders typically price 15-year fixed loans below 30-year fixed loans because the money is repaid sooner. The exact gap changes with the market, so compare live quotes for both terms.
How much more is a 15-year payment than a 30-year?
It depends on the loan amount and rates, but the principal & interest payment is often 40–55% higher. In our $400,000 illustration it is roughly $800 more per month. Use the payment calculator to test your own numbers.
Should I refinance from a 30-year to a 15-year?
It can make sense if you can afford the higher payment, plan to stay in the home, and the new rate and closing costs still save you money. a loan officer can show your break-even and total interest savings side by side.
Can I just pay extra on a 30-year instead?
Yes. Extra principal payments on a 30-year can mimic a 15-year schedule while keeping the lower required payment. You will usually pay a slightly higher rate than a true 15-year, but you keep flexibility.
Is it harder to qualify for a 15-year fixed?
Credit and down payment rules are generally the same as the 30-year version of the same program, but the higher payment raises your debt-to-income ratio, which can limit the loan amount you qualify for.
Educational content only. Guidelines change. Confirm details with UMortgage+ powered by NEXA Lending, LLC, before you apply.
See your 15-year fixed options
Get a personalized quote from a loan officer or call (480) 233-7897.