Your rate never changes. Not when the Fed moves, not in year nineteen. The payment you sign for is the payment you make.
30-year or 15-year?
Both are fixed for the whole term. The only thing that changes is how fast you pay it off, and what that costs you each month.
| Feature | 30-year fixed | 15-year fixed |
|---|---|---|
| Best for | Lower monthly payments and a longer runway. A popular choice for first-time buyers, or anyone who wants flexibility. | Paying the loan off fast and saving interest. Preferred by owners building equity quickly. |
| Interest rate | Competitive and stable. | Generally lower than a 30-year. |
| Monthly payment | Lower. | Higher, because the term is shorter. |
| Total interest | More over the life of the loan. | Less. |
| Down payment | As low as 3–5%. | As low as 3–5%. |
| Credit score | 620 minimum, typically. | 620 minimum, typically. |
What you’ll need
The bar for a fixed-rate loan, as it stands today.
- Stable incomeA consistent, reliable source.
- Credit score of 620The typical minimum.
- A reasonable debt-to-income ratioWhat counts as reasonable depends on the rest of your file.
- 3% down on low-balance loansMinimum.
- 5% down on high-balance loansMinimum.
- Within your county’s conforming limitAbove it, you are looking at a jumbo loan.
Fixed-rate or adjustable?
A fixed rate stays constant for the whole term. An ARM has a rate that moves after an initial fixed period — which can start lower, and introduces uncertainty and risk you do not have here.
Compare adjustable-rate mortgagesStraight questions.
Straight answers.
Is a 30-year better than a 15-year?
A 15-year accrues less interest overall. A 30-year gives you lower monthly payments, more liquidity and more flexibility — and you can put extra against the principal whenever you want, which gets you part of the way to a 15-year without committing to it.
Can I pay it off early?
Yes. Additional payments can be made to reduce the principal balance at any time.
Do fixed rates cost more than other programs?
Fixed-rate loans, and 30-year fixed especially, carry some of the lowest and most competitive rates. Some programs — 15-year fixed, ARMs, jumbo — can price slightly lower, for reasons specific to how each is underwritten.
What happens to my payment if rates go up?
Nothing. The rate is locked at the outset for the full term.