Compare 15-Year Mortgage Rates for June 2025
Most prospective homebuyers go for the standard 30-year fixed mortgage, but if you want to pay off your home faster and save money on interest costs, a 15-year mortgage might be a better fit.
With a 15-year loan, you'll typically get a lower interest rate and build up your home equity quicker than you would with a longer-term loan. The catch is that your monthly payments will be much higher since you're paying off the loan in half the time. Before you commit, carefully review your budget to make sure you can comfortably handle the higher monthly costs.
We'll walk you through how 15-year mortgages work and what rates are doing now so you can decide if the long-term savings outweigh the short-term cost. Current 15-year mortgage rate trends
Mortgage rates sharply climbed in early 2022 when the Federal Reserve began raising interest rates to fight inflation. The central bank shifted course and started lowering rates late in 2024, but mortgage rates have remained elevated, and interest rate cuts have been on hold throughout 2025.
So far this year, 30-year fixed rates have generally stayed between 6.5% and 7%, while 15-year mortgages have fluctuated between 5.75% and 6.5%. If the Fed cuts borrowing rates again this year, we might see a slight easing-off of 15-year mortgage rates, perhaps moving closer to 5%.
However, it's impossible to say where rates will land because they're influenced by a host of economic factors, including the Fed's policies, inflation and labor data, the bond market and investor sentiment. Product Interest rate 30-year fixed-rate 30-year fixed-rate FHA 30-year fixed-rate VA 30-year fixed-rate jumbo 20-year fixed-rate 15-year fixed-rate 15-year fixed-rate jumbo 5/1 ARM 5/1 ARM jumbo 7/1 ARM 7/1 ARM jumbo 10/1 ARM 30-year fixed-rate refinance 30-year fixed-rate FHA refinance 30-year fixed-rate VA refinance 30-year fixed-rate jumbo refinance 20-year fixed-rate refinance 15-year fixed-rate refinance 15-year fixed-rate jumbo refinance 5/1 ARM refinance 5/1 ARM jumbo refinance 7/1 ARM refinance 7/1 ARM jumbo refinance 10/1 ARM refinance Updated on June 02, 2025.
We use information collected by Bankrate to track daily mortgage rate trends. The above table summarizes the average rates offered by lenders across the country. What is a 15-year fixed mortgage?
A 15-year fixed mortgage is a loan you use to buy a house that you'll pay off over 15 years with a set interest rate. Because it has a shorter term than a mortgage loan with a 30-year term, the monthly payments are higher than with a fixed 30-year loan. 15-year mortgage vs. 30-year mortgage
The main difference between a 15-year mortgage and a 30-year mortgage is that a 15-year mortgage will ultimately cost you less since you'll have a lower interest rate and pay considerably less in interest over the lifetime of the loan. But paying off the loan in a shorter amount of time means your monthly payments can be almost double what they are for a 30-year loan. The pros of a 15-year fixed mortgage Shorter loan term: A 15-year fixed mortgage takes half the length of time to pay off compared with a 30-year mortgage. You'll have higher monthly payments, but you'll pay this home loan off twice as fast, resulting in less interest over time.
A 15-year fixed mortgage takes half the length of time to pay off compared with a 30-year mortgage. You'll have higher monthly payments, but you'll pay this home loan off twice as fast, resulting in less interest over time. Lower interest rates : Usually, 15-year fixed mortgages have lower interest rates than 30-year fixed mortgages. This is partly because you're paying back your lender sooner than with a longer-term loan, which means less risk for your lender.
: Usually, 15-year fixed mortgages have lower interest rates than 30-year fixed mortgages. This is partly because you're paying back your lender sooner than with a longer-term loan, which means less risk for your lender. Build equity in your home much faster: A 15-year fixed mortgage allows you to build more equity in your home faster than with a longer-term mortgage. This means you can enjoy some of the advantages of homeownership, such as refinancing your home loan or tapping into your home equity for financing options. The cons of a 15-year fixed mortgage Higher monthly payments: One downside to a 15-year mortgage is that you're stuck with high monthly payments for the duration of the home loan. If you make a 20% down payment on a $500,000 mortgage at a 7% interest rate with a 15-year fixed mortgage, your monthly payment will be about $3,994, compared to $3,060 with a 30-year fixed mortgage.
One downside to a 15-year mortgage is that you're stuck with high monthly payments for the duration of the home loan. If you make a 20% down payment on a $500,000 mortgage at a 7% interest rate with a 15-year fixed mortgage, your monthly payment will be about $3,994, compared to $3,060 with a 30-year fixed mortgage. The maximum mortgage amount you can borrow is smaller: Because you're making high payments every month, lenders could offer you a smaller mortgage amount than they might with a 30-year loan. This reduces the risk to the lender that you will default on the loan.
Because you're making high payments every month, lenders could offer you a smaller mortgage amount than they might with a 30-year loan. This reduces the risk to the lender that you will default on the loan. Less financial flexibility overall: If you commit to a 15-year mortgage with a high monthly payment, it could limit your ability to afford other expenses. It means you may have less money to contribute to investment or retirement accounts, or a smaller financial cushion to fall back on if you run into difficulties. Is it worth refinancing to a 15-year mortgage?
The main reasons people choose to refinance their home loans are to lower their interest rate or adjust the length of their loan term. Given today's high mortgage rates, you may not be able to secure a lower interest rate, but shortening your loan term can still help you save money.
For instance, if you refinance your 30-year mortgage to a 15-year mortgage, you'll end up with higher monthly payments but save on interest and build equity faster in the long run.
Before refinancing, consider your financial goals, how much you have left to pay on your mortgage and how long you plan to stay in one place. If you're almost done paying off your primary mortgage or plan to move in the next few years, refinancing to a 15-year mortgage may not offer much financial benefit.
If you like the idea of paying off your mortgage sooner, but you're worried about committing to higher monthly payments, there's an alternative. If you stick with a 30-year mortgage, see if you can make additional payments throughout the year, which will help shorten your loan term. This allows you to effectively pay off your 30-year mortgage sooner without locking yourself into the higher monthly payments that are attached to a 15-year mortgage. Alternatives to a 15-year mortgage 30-year mortgage: If you're unable to afford the higher monthly payments with a 15-year mortgage, a 30-year mortgage is a good option. While you'll pay more in interest overall, the lower monthly payments can make purchasing a home more affordable.
If you're unable to afford the higher monthly payments with a 15-year mortgage, a 30-year mortgage is a good option. While you'll pay more in interest overall, the lower monthly payments can make purchasing a home more affordable. 10-year mortgage: If you can afford the higher monthly payments that come with a 10-year mortgage, you'll save yourself five years of interest payments. However, you'll likely require a higher income and credit score to qualify.
If you can afford the higher monthly payments that come with a 10-year mortgage, you'll save yourself five years of interest payments. However, you'll likely require a higher income and credit score to qualify. Government-backed loan: If a 15-year mortgage doesn't work for your particular financial situation, you can also look into a government-backed loan like an FHA loan, VA loan or USDA loan, which will typically have much lower credit score requirements and often allow you to make a small down payment or no down payment at all. FAQs
You can use CNET's mortgage calculator to help determine how much you can afford for a house and work out how to manage financially. The tool takes into account your monthly income, expenses and debt payments. In addition to those factors, your mortgage rate will depend on your credit score and the zip code where you are looking to buy a house.
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