The Basics
What Is a 15-Year Fixed Mortgage?
A 15-year fixed mortgage is a home loan with a locked interest rate and a 180-month repayment term. Like a 30-year fixed, your rate never adjusts — but you pay the loan off in half the time, build equity significantly faster, and pay a lower interest rate because the lender's exposure period is shorter.
The trade-off is a higher monthly payment. Because you're retiring the same loan balance in half the time, each payment is larger than a 30-year equivalent. That higher required payment is the main qualification hurdle — but for borrowers whose income supports it, the 15-year fixed is the most cost-effective fixed-rate mortgage available.
180
Monthly payments to payoff
Lower
Rate vs. 30-year fixed
Ideal Borrower
Who the 15-Year Fixed Is Best For
The 15-year fixed isn't for everyone — the higher required payment means you need the income to support it comfortably. But for the right borrower, it's a significant financial advantage.
15-Year Fixed Wins When You...
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Have strong, stable incomeThe higher monthly payment requires solid income. Lenders will qualify you on the 15-year payment, so DTI must work at that level.
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Want to minimize total interest paidShorter term + lower rate = dramatically less total interest over the life of the loan.
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Are refinancing an existing loanIf you're 8–12 years into a 30-year, refinancing to a 15-year may keep your payoff timeline similar while cutting your rate.
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Are approaching retirement and want to be mortgage-freeA 15-year timed to your retirement date is a common and powerful strategy.
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Want to build equity quickly for a future moveFaster equity means more proceeds when you sell — and more down payment for the next home.
Consider 30-Year Instead When You...
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Need the lower payment to qualifyIf the 15-year payment pushes your DTI over the limit, you can only use a 30-year.
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Have variable or commission-based incomeThe higher required payment leaves less room in slow months. The 30-year gives you flexibility.
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Plan to invest the payment difference at higher returnsIf you can reliably earn more on investments than your mortgage rate, the 30-year + invest strategy wins mathematically.
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Are buying a starter home you'll sell in 5–7 yearsIf you're not staying long enough to realize the interest savings, the higher payment doesn't pay off.
See the full 30-year fixed guide →
The Savings
How Much Interest Does a 15-Year Fixed Save?
The interest savings on a 15-year vs. 30-year are substantial — often six figures on a typical loan. Here's the full comparison across common loan amounts, assuming a 0.625% rate advantage for the 15-year (a common spread).
$200,000
$279,040
$108,320 Save $170,720
$300,000
$418,560
$162,480 Save $256,080
$400,000
$558,080
$216,640 Save $341,440
$500,000
$697,600
$270,800 Save $426,800
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The savings are real — but the payment difference is too
On a $300,000 loan, the 15-year saves $256,080 in total interest — but your monthly payment is roughly $700 higher than the 30-year equivalent. The question is whether that $700/month creates more value as mandatory mortgage payoff or as investable capital. Bayou Mortgage will run both scenarios with actual numbers so you can make the call with complete information.
Payment Breakdown
15-Year Fixed Payment Examples
Your principal and interest payment depends on loan amount and rate. Here's how the 15-year payment compares to the 30-year equivalent across common loan sizes.
Loan Amount15-yr at 6.375%30-yr at 7.0%Monthly Difference
$200,000
$1,731
$1,331
+$400
$300,000
$2,596
$1,996
+$600
$400,000
$3,462
$2,661
+$801
$500,000
$4,327
$3,327
+$1,000
Principal & interest only. Rates shown for illustration — actual rates vary daily. Contact Bayou Mortgage for today's current rates.
Comparison
15-Year Fixed vs. 30-Year Fixed
A direct side-by-side on every factor that matters. Neither wins universally — it comes down to your income, goals, and time horizon.
| Factor | 15-Year Fixed | 30-Year Fixed |
|---|
| Interest Rate | Lower — typically 0.50–0.75% | Slightly higher |
| Monthly Payment | Higher — by 25–40% | Lower — more cash flow |
| Total Interest Paid | Dramatically less | Significantly more |
| Payoff Timeline | 15 years | 30 years |
| Equity Build Speed | Fastest of any fixed term | Gradual early, faster later |
| Qualifying DTI | Harder — higher payment | Easier — lower payment |
| Cash Flow Flexibility | Less — high required payment | More — low required payment |
| Best For | Strong income, payoff priority | First-time buyers, cash flow priority |
By Loan Program
15-Year Fixed Across Every Loan Type
The 15-year fixed term is available across all major loan programs — the program determines your eligibility and down payment, the term determines your payment and payoff speed.
Conventional 15-Year Fixed
The most common use case — a strong-income buyer or refinancer who wants to maximize equity and minimize total cost. PMI rules are the same as 30-year conventional. See conventional loan guide →
FHA 15-Year Fixed
FHA's 15-year fixed has one major advantage: if you put 10%+ down, MIP drops off after 11 years — vs. life of loan on a 30-year FHA. For buyers who can handle the payment, this accelerates the path to eliminating mortgage insurance. See FHA loan guide →
VA 15-Year Fixed
Zero down, no mortgage insurance, and a 15-year payoff timeline — an extremely powerful combination for eligible veterans. The funding fee is the same regardless of term. See VA loan guide →
15-Year as a Refinance Tool
Many borrowers refinance from a 30-year into a 15-year once income grows or existing equity makes the payment manageable. This is especially powerful at year 8–12 of a 30-year — your payoff date barely changes but your rate drops and equity builds much faster. See rate-and-term refinance guide →
Common Questions
15-Year Fixed Mortgage FAQ
Is a 15-year fixed rate always lower than a 30-year? +
Yes — consistently. Lenders price 15-year fixed rates lower than 30-year because they're taking on half the interest rate risk exposure. The spread varies with market conditions but typically runs 0.50%–0.75%. That rate advantage, combined with the shorter term, is what produces the dramatic total interest savings.
Will I qualify more easily for a 30-year than a 15-year? +
Yes — because lenders qualify you based on the actual monthly payment, and the 15-year payment is 25–40% higher on the same loan amount. If your DTI is right at the limit, the 30-year payment may qualify you where the 15-year doesn't. Bayou Mortgage will run both scenarios to show you the exact qualifying loan amounts at each term.
What if I take a 30-year and just pay extra every month? +
You can replicate the payoff timeline of a 15-year by adding extra principal payments to a 30-year loan — but you won't get the lower rate. The 15-year typically prices 0.50–0.75% better, which compounds significantly over 15 years. If rate discipline matters to you and you want the rate advantage locked in, the 15-year wins. If you value flexibility over the guaranteed rate discount, the 30-year-plus-extra-payments approach works too.
Is a 15-year fixed good for a refinance? +
Often yes — especially if you're 7–12 years into a 30-year loan. If you refinance from year 10 of a 30-year into a new 15-year, your payoff date shifts only slightly while your rate potentially drops and your equity builds much faster. Bayou Mortgage will show you the break-even calculation and compare the remaining interest on your existing loan vs. the total interest on the new 15-year to confirm whether the refinance makes sense.
Can I get a 15-year fixed with FHA or VA? +
Yes — both FHA and VA offer 15-year fixed terms. For FHA, the 15-year has a meaningful advantage: if you put 10%+ down, MIP cancels after 11 years rather than staying for the life of the loan. For VA, the 15-year gives eligible veterans zero down payment, no mortgage insurance, and a payoff in 15 years — one of the best financial combinations available in the mortgage market.
What happens to my payment if rates drop after I lock a 15-year? +
Nothing changes on your existing loan — your rate is fixed for all 180 payments. If rates drop significantly, you can always refinance into a new 15-year at a lower rate. The break-even calculation on a 15-year refinance is typically faster than a 30-year refinance because the rate differential applies to a loan that's already paying off quickly.
Want to See Both Scenarios Side by Side?
Bayou Mortgage will calculate the exact payment, total interest, and break-even for your specific loan amount on both a 15-year and 30-year — so you can choose with complete information.
