Current interest rates & mortgage calculator

Written by Bill MacDonaldSeptember 14th, 20221 minute read

15-year fixed-rate mortgage has a lower interest rate than a 30-year fixed-rate mortgage, which is a benefit. As a result, the total interest paid to the lender is significantly lower with a 15-year mortgage than with a 30-year fixed-rate loan. The disadvantage of a 15-year fixed-rate mortgage is that, because the repayment time is compressed into 15 years, the monthly loan payment is nearly double that of a 30-year fixed-rate mortgage.

Homeowners who want to refinance their current mortgage often choose the 15-year fixed-rate mortgage. Many potential candidates are surprised to hear that discount points can be used to "buy down" the interest rate. Many lenders can "roll in" the discount points or even pay the points on the borrower's behalf.

FHA, VA, and conventional home loans are all eligible for the 15-year fixed-rate mortgage.

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