Today’s 15-year mortgage rates in September 2024

Understanding how mortgages work is an art in itself. That's why our panel of financial experts is here to help you navigate the complexities of mortgages. Check out our review of 15-year mortgage rates and more.

First of all, it's worth asking what a 15-year mortgage is. As the name suggests, it is a loan that the borrower repays to the lender over a 15-year period. The interest rate on the principal remains fixed throughout the life of the mortgage.

The reason 15-year fixed rates are so popular as a mortgage option is their cost. They are a much more affordable option than other mortgage options available in the market. In addition, interest rates on 15-year mortgages are much lower today. As a result, you will also pay less interest on your overall payments.

If you are looking for a mortgage to refinance your 30-year mortgage, 15-year mortgage rates offer a better opportunity to refinance than another 30-year mortgage. A new 30-year mortgage will cost you much more than the current 15-year mortgage rates.

In addition to the lower cost of interest rates for a 15-year mortgage plan, there is another advantage. 15-year mortgages are the best option for people who want to retire without the burden of a mortgage. The interest rate is not as high as that of 10-year mortgages, nor as long as that of 30-year mortgages. But, of course, the monthly payment rate is quite high for 15-year mortgages, unlike longer payment plans such as 30- or 20-year mortgages. However, if a borrower is not concerned about the cost of monthly payments, 15-year mortgage rates are the ideal option for him.

Let's look at the different aspects of 15-year mortgage rates today.

Trends in mortgage rates

Mortgage rates are constantly changing. As a result, the rate you see today may not be the same fixed rate for a 15-year plan tomorrow. However, regardless of changes, interest rates for 15-year mortgages will be significantly lower than those for longer-term mortgages.

This type of mortgage obviously has a much shorter repayment period than 20- or 30-year mortgages. Although it has its disadvantages, you can choose to compare the interest rates of 15-year mortgages and the 15-year term and see if you are able to repay them.

If you look at the historical chart of 15-year mortgage rates, you will see that this is an ideal time to take out a 15-year mortgage on your property. Rates have remained, with some consistency, on a downward trend. If you are a decade or two away from retirement age, this type of mortgage offers you the best of long and short-term loans. In addition, a 15-year mortgage can be paid off more quickly than longer-term models. In addition, the interest rate is not as high as that of a 5- or 10-year model for monthly payments. This is a win-win situation.

The pros and cons of interest rates for a 15-year mortgage are explained later in this guide.

Current mortgage and refinance rates.

Forbes reports that as of April 22, current refinance rates for 15-year mortgages are 4.54 percent. The APR is 4.58 percent on the monthly principal and the interest amount is set at $768.

What is the current rate for a 15-year fixed-rate mortgage?

Today the rate for a 15-year mortgage is 5.1%. The rate has decreased by 0.104 percentage points since April 22. The rate has increased 0.973 percentage points since last month.

How can I find current 15-year mortgage rates?

You can check Forbes' daily updates on current 15-year mortgage rates. You can also do some calculations on special online mortgage calculators.

How can I compare current 15-year fixed-rate mortgage rates?

You should always compare 15-year fixed-rate mortgage rates to find the best way to save money on your mortgage. If you choose the right 15-year mortgage rates today, you can save thousands of dollars.

How can I find customized 15-year mortgage rates?

If you want to get a customized rate for an intermediate 15-year mortgage, you have several options. You can contact a financial institution, such as a bank or credit union. You can also consult the following websites to get a customized rate:

• Zillow
• MtgPros
• NerdWallet

What is a good 15-year fixed mortgage rate?

Mortgage rate ranges are constantly changing, as are rates and the economy. A good 15-year mortgage rate in 2022 would be a low and favorable rate of 3 percent. Check the 15-year mortgage rate table every day to get a better idea.

Do 15-year fixed-rate mortgages offer better rates?

15-year fixed-rate mortgages cost more or less, depending on your point of view. Although they are much cheaper than 30-year mortgages, the interest rates are quite high. There are not many opportunities for savings.

Advantages and disadvantages of a 15-year fixed-rate mortgage

Now that you have a better idea of 15-year mortgages and how they work, let's analyze their pros and cons. When researching the rates charged by banks or lenders for 15-year mortgages, a number of elements must be taken into account. Our team of specialists has compiled a list of the advantages and disadvantages of average 15-year mortgage rates, which you can use when choosing your mortgage term:

Advantages of 15-year mortgages:

• Lower interest rates: the reason 15-year mortgages are much more advantageous than longer term mortgages is that interest rates are lower. Interest rates can make a difference on the amount you end up repaying and the amount of your principal mortgage. If you want to avoid high interest costs, current 15-year fixed mortgage rates are perfect for your needs.
• Ideal for those about to retire: if you are about to retire, a 15-year mortgage will serve you better than other mortgage rates. Instead of tapping into your retirement savings, you can pay off your mortgage while you are working. By the time you retire, you will have paid off the loan and will retire without the burden of a mortgage.
• Faster payments: if you keep an eye on the chart of 15-year mortgage rates every day, you will see a big advantage. You will see that the 1521 plan offers a net payment that does not drag on for years. In addition to the other advantages, the 15 years gives the borrower the ideal period to pay off their debt quickly at a lower interest rate.
• Increased net worth: if you want to own the home you live in, 15-year mortgages are the ideal starting point. The payment period allows you to build up equity in your home well in advance of 20- or 30-year mortgages. If you choose the cheapest or most affordable 15-year mortgage rates, you can easily buy your home in half the time compared to a 30-year mortgage.
• Fewer payments: Are you looking for 15-year fixed mortgage rates to pay less payments? If you opt for a 15-year mortgage, you are already on the right track. Unlike the 360 installments of a traditional 30-year mortgage, 15-year mortgages allow you to repay the amount in 180 installments.

Disadvantages of 15-year mortgages:

• Much higher monthly payments: unlike a 20- or 30-year mortgage, the interest rates on a 15-year mortgage are much higher. You can end up paying 55 times more interest than a long-term mortgage. You should choose such a short-term mortgage only if you can afford the high monthly payments.
• The riskof default is higher: because 15-year mortgage rates are so high, borrowers may be forced to miss some payments. If you do not have a large sum of money at the time of the monthly payment, you risk default. Even the lowest rates for 15-year mortgages can be unbearably expensive, so be sure to make the decision based on your ability to pay.
• Inability to accumulate sufficient savings: In addition to high interest rates, you will have to sacrifice any hope of keeping a sum of money as savings. As the mortgage is repaid every month, it becomes difficult to save extra money. Buying another property or item may result in a deficit that you will not be able to cover.

These are just some of the advantages and disadvantages to consider when choosing a 15-year fixed-rate mortgage. Since the advantages outweigh the disadvantages, it is clear that a 15-year mortgage is a good choice to ease your financial situation. If you think you will be able to repay the mortgage on time, there is nothing to stop you from opting for this solution!

How are 15-year mortgage rates set?

Have you wondered who sets the rates of your 15-year mortgage? If you thought it was your lender, you were wrong. When you apply for a 15-year mortgage, you receive a lump sum from an approving lender. The lender sells the loan to secondary financial institutions and makes money on it so that it can be transferred to another borrower.

In this way, the lending institution does not depend on you to get its money, and the secondary market can stay afloat with stable payments over time. Without this secondary market, lenders would be much more reluctant to offer mortgages.

What is the difference between interest rate and APR?

The difference between interest rate and APR confuses many people. But it is easy to distinguish between the two. The interest rate on a loan is the amount you pay the lender on the principal amount. The APR, or annual percentage rate, on the other hand, is the amount of interest the lender calculates each year on the loan amount.

Learn more about fixed-rate loans

If you want to learn more about fixed-rate loans and their interest rates, you've come to the right place. Our financial experts will give you a complete overview of the advantages, disadvantages, and fabulous savings. Making the right decision about your mortgage interest rate is no longer an impossible task. Thanks to our guide, you will be able to outdo yourself.