15 Year Fixed Mortgage

Learn how a 15 year fixed mortgage rate can save you many thousands of dollars in interest payments over the life of the loan, but your monthly payments will be higher. It is the most common type of mortgage program where your monthly payments for interest and principal never change. Property taxes and homeowners insurance may increase, but generally your monthly payments will be very stable. Fixed-rate mortgages are available for 30 years, 20 years, 15 years and even 10 years. There are also "bi-weekly" mortgages, which shorten the loan by calling for half the monthly payment every two weeks. Since there are 52 weeks in a year, you make 26 payments, or 13 "months" worth, every year.

15 year fixed mortgage rate fully amortizing loans have two distinct features. First, the interest rate remains fixed for the life of the loan. Secondly, the payments remain level for the life of the loan and are structured to repay the loan at the end of the loan term. The most common fixed rate loans are 15 year and 30 year mortgages. The standard fixed loan lasts for 30 years, but if you can handle higher payments and want to build up your equity in your home faster, you can opt for a 15 year fixed mortgage loan. With a 15-year, you'll get a lower rate and pay much less interest over the life of the loan. The payments each month, however, will be quite a bit higher since they aren't being stretched over so long a period. 

Conversely, a 15 year fixed mortgage will have a higher monthly payment and a lower interest rate so you'll pay less for your house because you're paying it off in a shorter period. For most home buyers, especially first-time buyers, taking a 15 year fixed mortgage is out of the question. The higher monthly payments are often too much to handle for these types of buyers. But for home buyers with sufficient income and a desire to be mortgage-free in a short time, a 15-year loan might be a good bet. The current average mortgage interest rate across the USA as of August 8th, 2003 is about 6.125% for a 30 year FRM mortgage, and about 5.5% for a 15 year FRM mortgage. These mortgage interest rates change daily. We provide these rates only to give you an idea of what the current mortgage interest rates are. These mortgage interest rates will vary by state, and also by what mortgage package you qualify for.