What about refinance timing into a 15-year?

We assess breakeven timing, closing costs, and long-term savings. If the math checks out, moving into a 15-year can accelerate equity and reduce lifetime interest.

Is there a prepayment penalty on a 15-year fixed?

Most modern agency and many jumbo loans have no prepayment penalty, though you should always verify your Loan Estimate and closing documents.

Can I get a 15-year fixed on a jumbo loan?

Yes, many jumbo products allow 15-year terms. Pricing, reserves, and documentation may be more stringent than conforming loans.

The 15 Year Fixed Mortgage offers a fixed interest rate and a 180-month amortization, producing higher monthly payments than a 30-year but substantially lower total interest cost and a faster equity build. It suits borrowers prioritizing rapid payoff, strong cash flow, or refinance objectives. Key considerations include payment-to-income ratio, liquidity buffer, and opportunity cost relative to investing or other debts. Use our mortgage calculator, compare monthly payment scenarios, and contact the JD.Mortgage team at PRMG for tailored options across conventional, FHA, VA, jumbo, and non-QM products.

15 Year Fixed Mortgage

Q: Does a 15-year always have a lower rate than a 30-year?

Often, yes. 15-year loans typically price lower than 30-year terms, but actual rates depend on market conditions, credit profile, loan-to-value, points, and product type.

Q: Is the payment too high compared to a 30-year?

Monthly payments are higher on a 15-year, but total interest is significantly lower and equity builds faster. A budget review confirms whether the higher payment fits safely.

Q: Can first-time buyers use a 15-year?

Yes—if cash flow supports the higher monthly payment. Down payment assistance and other programs can improve affordability while keeping a shorter payoff horizon.

Q: Does PMI drop faster on a 15-year conventional loan?

The quicker amortization of a 15-year can help reach PMI cancellation thresholds sooner on conventional loans, subject to investor and servicer rules.

A 15 Year Fixed Mortgage keeps your rate and principal-and-interest payment locked for 180 months, helping you save tens of thousands in interest and build equity fast compared to longer terms. It’s ideal when you want predictable payments and a faster payoff without rate risk. See 15-year options and payment comparisons.

How a 15 Year Fixed Mortgage Works

Table of Contents

With a 15-year term, more of each payment goes to principal earlier in the schedule, accelerating equity and reducing total interest. Unlike adjustable loans, your rate won’t change, making budgeting straightforward. This loan can be used for purchases or refinances (rate/term or cash-out, subject to program rules). Run payment scenarios with the Mortgage Calculator.

15 Year Fixed vs. 30 Year Fixed

Compared with a 30-year, the 15-year typically comes with a lower rate and a much lower total interest cost—yet a higher monthly payment. If you value liquidity and the option to pay more when you choose, a 30-year with voluntary prepayments might fit. If you want forced discipline and the fastest principal reduction, the 15-year shines. Review the Mortgage Process to see how we structure terms for your goals.

Who a 15 Year Fixed Mortgage Fits Best

Consider the 15-year when you have stable income, an emergency reserve, and a plan to stay in the home long enough to benefit from faster amortization. It can work well for move-up buyers, downsizers aiming to eliminate a mortgage before retirement, or investors with strong cash flow prioritizing debt-free timelines. Explore Loan Options we can pair with a 15-year term.

Payment Examples and Budgeting Tips

While we don’t publish live rates, you can estimate your monthly payment by entering your loan amount, estimated rate, taxes, insurance, and any association dues. Many buyers compare the 15-year’s higher payment to the interest savings and earlier payoff date to decide. Be sure to keep liquidity for maintenance, moving costs, and life events. Calculate and compare payments now.

15 Year Fixed Mortgage and Mortgage Insurance

Conventional loans with less than 20% down generally require PMI; the 15-year’s faster equity build can help you reach cancellation thresholds sooner (per investor/servicer rules). FHA loans have MIP and specific removal guidelines, while VA loans typically have no monthly mortgage insurance. We’ll model all options to see which wins for your scenario. Compare Conventional Loans and PMI strategies.

Using a 15 Year Fixed Mortgage for Refinancing

Refinancing into a 15-year can shorten your payoff timeline and slash lifetime interest. Many homeowners pivot from 30-year to 15-year terms after income rises or when rate environments improve. We’ll review closing costs, breakeven timing, and cash flow impacts to confirm the move makes sense. See Refinance strategies for 15-year terms.

Credit, Down Payment, and Loan Types

The 15-year term is available across many programs: conventional, FHA, VA, and even certain non-QM options. Credit score, reserves, and DTI guidelines vary by product. The JD.Mortgage team at PRMG is both a hybrid direct lender and a broker, broadening options to fit unique profiles. Contact us to review eligibility and documentation.

Appraisal, Closing Costs, and Timing

Expect standard milestones: disclosures, appraisal (when required), underwriting, and closing. We’ll analyze rate/points trade-offs and confirm title/escrow fees so you understand total cost of ownership. Typical purchase timelines range by contract and local turn times; refinances depend on appraisal and payoff coordination. See our step-by-step Mortgage Process.

Jumbo and High-Balance 15 Year Fixed Options

15-year terms are available on many jumbo and high-balance scenarios (program-specific). Pricing and reserve requirements may differ from conforming loans. We’ll benchmark investor guidelines and structure terms for speed-to-equity without overextending monthly obligations. Explore Jumbo Loans and high-balance parameters.

Taxes, Insurance, and Escrows

Your payment estimate should include property taxes and homeowners insurance. Depending on LTV and product, escrows may be required. For accurate planning, confirm county tax rates and insurance quotes early in the process. Estimate a full PITI payment.

Prepayment, Biweekly Strategies, and Flexibility

Most modern mortgages have no prepayment penalty (verify your disclosures). Even on a 30-year, biweekly or principal-curtailment strategies can emulate a shorter term. We’ll help you evaluate whether locking into a 15-year or keeping 30-year flexibility with planned prepayments better fits your risk tolerance. Learn about mortgage rules at the CFPB.

Interest Rate Market Basics

Rates move with market forces like inflation, employment data, and mortgage-backed security demand. Term length, loan type, credit score, LTV, points, and property type all influence pricing. Because market conditions change, we provide custom quotes and side-by-side scenarios. See FHFA resources for market context.

Documentation Checklist for a Smooth 15 Year Fixed Mortgage

Purchase and refinance files run faster with organized docs—ID, income (W-2/1099/tax returns as applicable), assets, and housing history. For self-employed or non-QM paths, alternative documentation may apply. We’ll share a tailored checklist after a short discovery call. Reach out to request your checklist.

Why Work With the JD.Mortgage Team at PRMG

We operate as a hybrid direct lender and broker, pairing in-house efficiency with expanded access to specialty products. That breadth is invaluable when weighing 15-year vs. 30-year trade-offs, jumbo overlays, or non-QM solutions. Our goal: clarity, speed, and smart structuring that respects your cash flow and long-term plan. Learn more about the JD.Mortgage team.

Frequently Asked Questions: 15 Year Fixed Mortgage

Below are answers to the most common questions we receive about 15-year fixed terms. Jump to the FAQ section now.

Next Steps

If you’re considering a 15-year, we’ll compare multiple programs, outline payment and interest savings, and confirm that your liquidity and debt strategy remain healthy. From there, we’ll lock a competitive rate and coordinate a smooth close. Start a quick conversation with our team.

15 Year Fixed Mortgage FAQs

Does a 15-year always have a lower rate than a 30-year?
Typically yes, but pricing depends on market conditions, credit, LTV, points, and loan type. Ask for a custom quote.

Is the payment too high compared to a 30-year?
The monthly payment is higher, but total interest is much lower with faster equity. We’ll confirm that the payment aligns with your budget and reserves. Test payments here.

Can first-time buyers use a 15-year?
Absolutely—if cash flow supports it. We’ll compare 15-year vs. 30-year and any down payment assistance that may improve affordability. See Loan Options.

What about refinance timing?
We evaluate breakeven points and long-term savings when moving into a shorter term. If the math works, a 15-year can be a powerful wealth tool. Explore refinance paths.

Is there a prepayment penalty?
Most standard products have no prepayment penalty today (verify in your disclosures). Read more at the CFPB.

Does PMI drop faster on a 15-year?
The faster amortization can help reach PMI cancellation thresholds sooner on conventional loans (subject to investor/servicer rules). Review conventional PMI basics.

Can I do a 15-year on jumbo?
Often yes, though guidelines and reserves may be tighter. See Jumbo details.

Get Started with a 15-Year Fixed Mortgage Today

Crush Your Mortgage in Half the Time

J.D. Peck

Pay Less Interest. Pay Off Your Home Faster.