Mortgage ToolkitWhy choose a 15-year fixed mortgage
A 15-year fixed mortgage typically carries a meaningfully lower interest rate than a 30-year loan, and because the term is shorter, a much larger share of every payment goes to principal from day one. The result is faster equity building and dramatically less total interest paid — often less than half of what the same loan amount would cost over 30 years. See the exact split with the amortization calculator.
How the rate above is calculated
The figure at the top of this page is a weekly national average sourced from Federal Reserve Economic Data (FRED), tracking the Freddie Mac Primary Mortgage Market Survey. It reflects what lenders were quoting borrowers with strong credit that week, not a personalized rate. Your credit score, down payment, and loan type will move your actual quote above or below this average.
The tradeoff: higher monthly payment
Compressing the same loan amount into half the time raises the required monthly payment substantially, which is the main reason most buyers don't choose this term. It works best for buyers with stable, higher income who want to be mortgage-free sooner and minimize lifetime interest cost, rather than maximize monthly cash flow. If you're unsure which term fits your budget, compare both directly against today's 30-year average rate.
A middle path: extra payments on a 30-year loan
If the required 15-year payment feels too tight for comfort, you can approximate its benefits on a 30-year loan by making consistent voluntary extra payments — you keep the lower required payment as a safety net, while still shortening your payoff timeline and cutting total interest. Model this with the mortgage overpayment calculator, or put both loan structures side by side with the loan comparison calculator.