Who are 15-year fixed loans best for?

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.

What are the pros and cons of a 15-year fixed loan?

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.

15‑year fixed mortgage: Rates, benefits & how to qualify

Q: How do 15-year fixed loans work?

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.

Q: Can I put more than 3% down?

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.

15-year fixed

Go mortgage free in 15 years or less

Build equity faster each month

Save thousands on total interest

Get a fixed rate and predictable payment

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The ins & outs of 15-year fixed loans

Key benefits

Build equity faster

More of each payment goes to principal, so you own more sooner.

Less interest, more savings

A shorter term with the benefit of a better rate could lower your total cost over time.

Flexible early payoff

There’s no penalty for paying off your loan ahead of the 15-year schedule.

What to expect

Faster monthly pace

You’ll make higher monthly payments in exchange for less time on the loan.

Adjusted borrowing power

A higher mortgage payment could reshape the loan amounts you qualify for.

Simplified budget

With more going toward your mortgage, you may have fewer funds available.

Explore, compare, find the right fit

Best for

Down payment

Credit score

Mortgage insurance

15-year fixed

Best for

Own your home sooner, pay less interest

Down payment

Typically 3%–20%

Credit score

620+

Mortgage insurance

PMI required if <20% down

Best for

Lower monthly payments with more flexibility

Down payment

Typically 3%–20%

Credit score

620+

Mortgage insurance

PMI required if <20% down

Learn more

30-year fixed

Best for

Own your home sooner, pay less interest

Down payment

Typically 3%–20%

Credit score

620+

Mortgage insurance

PMI required if <20% down

Best for

Lower monthly payments with more flexibility

Down payment

Typically 3%–20%

Credit score

620+

Mortgage insurance

PMI required if <20% down

Learn more

15-year fixed

30-year fixed

Best for

Own your home sooner, pay less interest

Lower monthly payments with more flexibility

Down payment

Typically 3%–20%

Credit score

620+

Mortgage insurance

PMI required if <20% down

Learn more

Discover more loan options

Tools to explore

Questions? We’ve got answers.

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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.

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.

Learn more about fixed-rate loans