Having a 15-year mortgage may reduce the home mortgage interest deduction you qualify for, since you’ll be paying less in interest.
Current 15-Year Mortgage Rates
The current average rate for a 15-year fixed mortgage is 5.79%. Find your best rate below.
Updated on:
August 11, 2025
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The average 15-year fixed mortgage rate is currently 5.79%. Rates on 15-year mortgages are usually lower than 30-year mortgage rates, so you could save a lot by simply choosing a 15-year loan term. Lenders consider a shorter loan term to be less risky, which is why they’re willing to offer lower mortgage rates.
15-year mortgage rate guide
15-year mortgage rates today
Rates on 15-year mortgages have remained elevated in 2025 compared to the lows of the COVID-19 pandemic. Mortgage rates are expected to remain relatively stable through the year, but this could change if the Federal Reserve decides to cut the federal funds rate.
What affects 15-year mortgage rates?
- Your credit score. A higher credit score usually gets you a lower rate.
- Your down payment. A larger down payment typically results in lower interest rates.
- Your loan amount. Particularly small or large loan amounts may come with higher rates.
- Your home’s location. Lenders offer different rates based on the state you live in.
- Your plans to live in the home. The lowest rates are typically reserved for borrowers who are buying a home as their primary residence. You’ll pay a higher rate for a second home or rental property.
- Your interest rate type. Fixed-rate loans typically come with higher interest rates than adjustable-rate mortgages (ARMs). If you have extra money to pay mortgage points, you can also buy a lower rate.
- The economy. A strong or weak economy, along with Federal Reserve policies, inflation and bond yields, may cause changes in the mortgage rate market.
Pros and cons of a 15-year mortgage
Pros
You’ll pay less interest. Rates on 15-year mortgages are usually lower compared to 30-year mortgages, so you’ll pay less interest over the life of the loan.
You can grow home equity faster. Since a higher portion of your monthly payment will go toward principal instead of interest, you’ll build equity quicker.
You’ll pay off your loan earlier. Since your loan term is 15 years versus the standard 30 years, you’ll pay off your house sooner.
Cons
You’ll have a higher monthly payment. Since you’re repaying the loan over a shorter term, your mortgage payment will be higher each month.
You may lose the mortgage interest tax deduction. You may not pay enough interest to qualify for the home mortgage interest deduction at tax time.
You’ll face tougher eligibility requirements. Lenders hold 15-year mortgage borrowers to higher qualification standards, since the monthly payments are more expensive.
Is a 15-year mortgage right for you?
A 15-year mortgage can be worth it if you can afford the higher monthly payments, since it’ll help you build equity and pay your loan off faster. However, if you prefer having more wiggle room in your budget, a 30-year mortgage may be a better fit. Keep in mind you could make extra payments on your 30-year loan to pay it off early.
Here are a few things to consider during your decision-making:
Choose a 15-year fixed-rate mortgage if you:
- Want the loan option that costs you the least long term
- Can afford a higher monthly payment
- Want to pay off your mortgage faster
- Want a quicker way to build home equity
Choose a 30-year fixed-rate mortgage if you:
- Want the lowest monthly payment possible
- Need room in your monthly budget for other expenses or savings goals
- Don’t want to lock yourself into a 15-year repayment schedule
Learn more about what to consider when choosing a 15-year or 30-year mortgage.
| 15-year mortgage | 30-year mortgage | |
|---|---|---|
| Loan amount | $280,000 | $280,000 |
| Interest rate | 5.96% | 6.94% |
| Monthly payment (principal and interest) | $2,356.75 | $1,851.58 |
| Total interest paid | $144,215.44 | $386,568.03 |
| Total amount paid over loan term | $424,215.44 | $666,568.03 |
Can you refinance into a 15-year mortgage?
You can refinance an existing mortgage and replace it with a new, 15-year loan that has a lower rate — assuming that current mortgage rates are lower than they were when you closed on your original loan. The process is essentially the same as any other home loan: Your lender verifies your credit history and income to ensure you meet the minimum refinance requirements.
Read more: Should I refinance to a 15-year mortgage?
Frequently asked questions
Finding the best 15-year mortgage rates involves shopping around and comparing quotes from a few different lenders. In addition, confirming whether your rate is fixed or adjustable, since this will affect your total interest costs. Purchasing mortgage points can also help lower your mortgage rate.
It’ll depend on your financial situation and goals. If you don’t like carrying debt for any longer than you need to and can afford higher monthly payments, a 15-year mortgage could be a good fit. On the other hand, if lower monthly payments are more of a priority, a 30-year mortgage may be a better option.