15-year fixed

A 15-year fixed-rate loan can be a good option for a range of home buyers and refinancers, especially those who:

• Can handle a higher monthly payment to pay off their loan faster.
• Want to refinance and take advantage of lower interest rates.
• Want to build equity more quickly.

If you get a 15-year fixed-rate mortgage and make all your payments as scheduled, the mortgage will be paid off completely in 15 years.

With a fixed-rate loan, your interest rate stays the same for the entire length of the mortgage.

There are a few different types of 15-year fixed-rate mortgages, including conventional, FHA, VA, and Jumbo.

We can help you know what’s best for your situation.

Pros

• You’ll pay less interest because of the shorter term.
• Interest rates are typically lower because it doesn’t take as long for lenders to get reimbursed for the loan.
• Build equity faster. Equity is the difference between what you owe on your home and its value. A 15-year term means you’ll pay your loan balance down more quickly, building equity.

Cons

• Higher monthly payments because of the shorter term.
• Lower home affordability. A higher mortgage payment increases your debt-to-income ratio, so you could prequalify for a lower amount.
• Less money for savings. Higher monthly payments could leave less money for savings or other expenses.

Yes! You can make a down payment bigger than 3%.

Why put down more? The more you put down, the lower your monthly mortgage payment will be.

Or you could decide to go with the lowest down payment and use the funds for closing costs.

We’ll help you know which strategy is best for you.