15 year fixed loan rates explained for smart homeowners

What a fixed term really means

A 15-year fixed mortgage locks your interest rate for the entire repayment period, giving you predictable payments and faster equity build. Compared with a 30-year, the rate is typically lower, though the monthly payment is higher because you compress payoff into half the time.

How rates are set

Lenders price offers based on market yields, credit score, loan-to-value, points, and property type. Paying discount points can buy a lower rate; opting for lender credits may raise the rate but reduce closing costs. Strong borrowers often see the best annual percentage rate (APR), which reflects both rate and fees.

When a 15-year shines

Choose this term if your cash flow can comfortably absorb the payment and you value rapid principal reduction. It’s common for refinancers seeking to shed years and interest.

• Lower total interest over the life of the loan
• Faster equity and earlier debt freedom
• Greater protection from future rate hikes
• Higher monthly payment versus longer terms

Compare quotes the same day, request itemized fees, and run break-even math before locking.