What is a 15-year fixed-rate mortgage? A 15-year fixed-rate mortgage means you agree to pay off the loan in 15 years with an interest rate that doesn’t change throughout the life of the loan.
(The average for a 30-year fixed-rate home mortgage was 3.81% as of July 18, Freddie Mac reported. And 15-year fixed-rate.
But a 15-year mortgage rate has two major drawbacks compared with a 30-year loan for the same amount: The monthly payments are higher. You have less flexibility when money is tight, which can happen when you have unexpected expenses or a surprise drop in your income, whether temporary or.