The Best 15-Year Mortgage Rates for 2022

The national average 15-year fixed mortgage rate is 4.97% and the 15-year jumbo mortgage rate is 4.94%, as of August 16, 2022. These prices are not the indicative prices you may see advertised but, according to our methodology, they should more accurately represent what customers can expect to get based on their qualifications.

You can read more about what makes our pricing different in the Methodology section of this page.

Key points to remember

  • A 15 year mortgage means a higher monthly payment.
  • It’s paid off in half the time, which translates to thousands of dollars in interest savings.
  • Rates for 15-year mortgages are generally a bit lower than those for 30-year mortgages.

15-year mortgage vs. 30-year mortgage

Just because it’s common for homeowners to take out a 30-year mortgage doesn’t mean you have to. Borrowers who get the best 15-year mortgage rates can save tens of thousands of dollars in interest over the term of the loans. Although it comes with a higher monthly payment, those who plan correctly will be able to take advantage of lower interest rates and increase the equity in their property much faster.

Even then, you’ll want to make sure your financial situation is strong enough to afford the big payments. To help you with your decision, we’ve compiled a list of the best 15-year mortgage rates, along with information like the pros and cons of choosing this type of mortgage.

Who Should Consider a 15 Year Mortgage

Homeowners who want to save significantly on a home loan and can afford to pay the higher amount monthly mortgage payments best suited for 15-year mortgages.

Loans tend to have lower interest rates – government-backed agencies like Fannie Mae and Freddie Mac tend to impose price adjustments on loans, driving up mortgage costs by 30 year.

Borrowers considering 15-year mortgages should consider whether they can afford the monthly payments, as they will be higher compared to a 30- or 20-year mortgage.

15-year mortgage rates

The best rate you can get will depend on your credit profile, the amount of money you are investing, and other financial considerations, given the prevailing rate conditions.

For example, if the average rate in your area is currently 7%, you could get a mortgage at 6.75% or 7.3% depending on your creditworthiness and other financial factors.

15-year rates are lower than 30-year rates

Mortgage rates are partly based on bond prices in the mortgage-backed securities market. Bond investors want to put their money in a low-risk investment that offers a decent rate of return that will keep up with the rate of inflation.

Since inflation rates and other risk factors tend to rise over time, longer-term loans will have higher interest rates than short-term ones. Investors cannot accurately predict inflation rates and other risk factors long in advance.

Freddie Mac and Fannie Mae, two government-backed agencies, are also imposing price adjustments for lending levels, driving up 30-year mortgage costs. Many 15-year mortgages don’t have these additional fees, which results in a lower rate.

Current 15-year mortgage rates

Type of loan To buy Refinance
15 years fixed 4.97% 5.25%
15 year fixed jumbo 4.94% 5.04%
National averages of the lowest rates offered by over 200 of the country’s major lenders, with an 80% loan-to-value (LTV) ratio, an applicant with a FICO credit score of 700-760 and no mortgage points.

Today’s rates for all types of mortgages

Type of loan To buy Refinance
Fixed 30 years 5.55% 5.99%
30-year fixed FHA 5.43% 5.91%
VA 30 years fixed 5.60% 6.15%
30 year fixed jumbo 4.94% 5.03%
20 years fixed 5.23% 5.46%
15 years fixed 4.97% 5.25%
15 year fixed jumbo 4.94% 5.04%
10 years fixed 4.95% 5.19%
10/6 ARM 5.78% 6.10%
ARM 7/6 5.81% 5.90%
Jumbo 7/6 ARM 4.62% 4.80%
5/6 ARMS 5.61% 5.74%
Jumbo 5/6 ARM 4.73% 4.81%
National averages of the lowest rates offered by over 200 of the country’s major lenders, with an 80% loan-to-value (LTV) ratio, an applicant with a FICO credit score of 700-760 and no mortgage points.

What is a 15 year mortgage?

A 15 year mortgage is a fixed rate loan to pay for the purchase of a home. The monthly payment, which includes principal and interest, remains the same for the duration of the mortgage.

It is paid off in half the time of a traditional 30-year mortgage. The shorter term and higher monthly payments translate to savings of thousands of dollars in interest over the life of the loan.

Does the Federal Reserve set mortgage rates?

The Federal Reserve does not set mortgage rates, but it certainly influences them.

The Fed decides the federal lending rates it charges banks to borrow money from the government in the short term.

Here’s how it works: The Federal Reserve (more specifically, the Federal Open Market Committee) sets current federal funds rates with the goal of keeping the economy stable. The banks in turn redefine their own adjustable and short-term interest rates.

(Banks borrow money from the Federal Reserve, and borrow and lend it to each other, in a constant flow that keeps the system in balance.)

When these interbank rates rise, it becomes more expensive for financial institutions to borrow from other financial institutions. They adjust their loan rates, including mortgage rates, to cover additional expenses.

There are other factors involved in the precise rate that will be offered to an individual home buyer. These factors include the borrower’s assets, liabilities and credit rating.

What are the differences between a 15-year and a 30-year mortgage?

The biggest difference between the two is the repayment term. A 30 year mortgage will take 30 years or 360 monthly payments. The 15 year term will take half the time and the borrower will end up paying less interest over the years.

Since a 30-year mortgage spreads your monthly payments over a longer period, the monthly payments will be lower. You will also pay interest on the loan twice as long. You can also pay a slightly higher interest rate.

Are the interest rate and APR the same?

Interest rate and APR are not the same.

The interest rate is the amount you will pay to borrow money, expressed as a percentage of the loan amount.

The APR is the interest rate plus any additional fees that will be charged for the mortgage. Costs may include application fees, brokerage fees, discount points and closing costs. It will also take into account any discounts you will get in return. The APR is also expressed as a percentage.

It is because of these additional costs that the APR is higher than the interest rate. There are some exceptions, for example when a lender gives a refund for part of the interest charged.

When is a 15 year mortgage a smart option?

A 15-year mortgage is a smart option for borrowers who want to save money on interest and can afford larger monthly payments without compromising their other financial goals and responsibilities.

For example, a borrower who cannot take out a 15-year mortgage without sacrificing regular savings account and retirement fund contributions should probably stick with a longer-term mortgage. A 20-year term is a happy medium.

For borrowers who have variable or sporadic income, a 15-year mortgage only makes sense if there is a realistic plan to make the mortgage payment during lean times.

If you have a plan, the savings are worth it. Let’s say you have a $300,000 mortgage and the rate is 4.25% for a 30-year term, compared to 4.00% for a 15-year term. At the end of the 30-year term, you will have paid $231,295.08 in interest compared to $99,431.48, a savings difference of $131,863.60. It is quite important.

However, the price savings equates to a much higher monthly payment. The payment for the 30-year mortgage will be $1,475.82, compared to the 15-year loan, which is $2,219.06. That’s why it’s a good idea to research the lowest rates and compare terms to make sure you can comfortably afford the mortgage.

How we choose the best 15-year mortgage rates

In order to assess the best 15-year mortgage rates, we first had to create a credit profile. This profile included a credit score ranging from 700 to 760 with a home loan to value (LTV) ratio of 80%. With this profile, we’ve averaged the lowest rates offered by over 200 of the nation’s top lenders. As such, these rates are representative of what real consumers will see when shopping for a mortgage.

Remember that mortgage rates can change daily and this data is provided for informational purposes only. A person’s personal credit and income profile will be the determining factors of the loan rates and terms they can obtain. Loan rates do not include amounts for taxes or insurance premiums and individual lender terms will apply.

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