Build equity faster with a 15-year fixed home loan
Fixed interest rate
Your interest rate stays the same for the life of the loan.
3% down payment
You can get into a new home with a down payment as low as 3%.
Pay less interest
The shorter term means you pay less interest overall. Plus, your interest rate will likely be lower.
No prepayment penalties
Want to pay off your mortgage early? You won’t get hit with prepayment penalties.
Guidelines for this loan
The home
You can buy a home or refinance an existing mortgage.
Credit profile
You'll typically need a credit profile above 620.
Debt-to-income
Your debt-to-income ratio (DTI) should be less than 50%.
Closing costs
In addition to your down payment, you’ll need enough funds to cover closing costs.
Get more in-depth details
Articles that give you more information about this loan and explain how mortgages work.
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What is a 15-year fixed-rate mortgage?
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Frequently asked questions
Answers to questions about this loan we heard from people like you during research.
A 15-year fixed-rate loan can be a good option for a range of home buyers and refinancers, especially those who:
- Can handle a higher monthly payment to pay off their loan faster.
- Want to refinance and take advantage of lower interest rates.
- Want to build equity more quickly.
If you get a 15-year fixed-rate mortgage and make all your payments as scheduled, the mortgage will be paid off completely in 15 years.
With a fixed-rate loan, your interest rate stays the same for the entire length of the mortgage.
There are a few different types of 15-year fixed-rate mortgages, including conventional, FHA, VA, and Jumbo.
We can help you know what’s best for your situation.
Pros
- You’ll pay less interest because of the shorter term.
- Interest rates are typically lower because it doesn’t take as long for lenders to get reimbursed for the loan.
- Build equity faster. Equity is the difference between what you owe on your home and its value. A 15-year term means you’ll pay your loan balance down more quickly, building equity.
Cons
- Higher monthly payments because of the shorter term.
- Lower home affordability. A higher mortgage payment increases your debt-to-income ratio, so you could prequalify for a lower amount.
- Less money for savings. Higher monthly payments could leave less money for savings or other expenses.
Yes! You can make a down payment bigger than 3%.
Why put down more? The more you put down, the lower your monthly mortgage payment will be.
Or you could decide to go with the lowest down payment and use the funds for closing costs.
We’ll help you know which strategy is best for you.