A 15-year fixed loan has a higher monthly payment but a shorter runway. You typically get a lower rate and you own your home outright in half the time, with a much smaller total interest bill.
Highlights
- Lower rate than most 30-year options
- Equity builds quickly
- Dramatically lower total interest
- Debt-free sooner
Keep in mind
- Monthly payment is noticeably higher
- Needs more income to qualify for the same price
Who it suits
Borrowers with strong income who want to be mortgage-free sooner, and many refinancers moving down from a 30-year.
Eligibility, rates and terms vary by borrower, property and state.