15 year fixed mortgage rates explained for smart homebuyers

What they are

A 15-year fixed mortgage locks your interest rate for the entire term, pairing predictable payments with a faster payoff. Compared with a 30-year, the rate is typically lower because lenders face less long-term risk, yet the monthly payment is higher since the balance is repaid in half the time.

Why they appeal

Borrowers choose this option to build equity quickly, reduce total interest, and gain financial clarity. Over the life of the loan, the interest savings can be substantial, especially when paired with a solid credit profile and manageable debt-to-income ratio.

Key factors that influence pricing

• Credit score: Higher scores earn better quotes.
• Loan-to-value: Bigger down payments reduce risk.
• Market yields: Treasury and MBS moves sway rates daily.
• Points and fees: Paying points can lower the rate.
• Occupancy and loan size: Primary homes and conforming balances often price best.

To evaluate offers, compare the APR, total interest, and break-even on any points. If cash flow allows, a 15-year can be a disciplined path to debt-free homeownership.