Compare 15-Year Mortgage Rates for July 2025

If you’re looking to pay off your home loan faster and save money on interest, a 15-year mortgage might be a good fit. Though the 30-year fixed-rate mortgage is more common among first-time homebuyers, a 15-year loan allows you to build equity quicker and typically comes with a lower interest rate.

So far this year, 30-year fixed rates have held between 6.5% and 7%, while 15-year mortgages have hovered between 5.75% and 6.25%. If the Federal Reserve cuts borrowing rates again this year, we might see a slight easing of 15-year mortgage rates, moving closer to 5.5% by the end of the year.

The main trade-off with a shorter loan term is higher monthly payments since you’re condensing the repayment period into half the time. As with any major debt you plan to take on, assess your budget carefully to make sure the larger payments are manageable.

We’ll explain 15-year mortgages, including current rates and trends, to help you make an informed decision.

Current 15-year mortgage rate trends

After falling to historic lows under 3% during the COVID-19 pandemic, mortgage rates more than doubled in 2022. The surge was due to a combination of high inflation and a series of interest rate hikes by the central bank. So far in 2025, 15-year mortgage rates continue to hover around 6%.

After making three interest rate reductions late last year, the Fed has held off on further cuts this year due to immense economic and political uncertainty. While the central bank doesn’t directly set mortgage rates, its policy decisions and outlook for the economy influence the direction of borrowing costs across the economy, including for home loans.

In addition to the Fed’s policies, mortgage rates are particularly influenced by the bond market and investor sentiment. For home loan rates to fall consistently, experts say there needs to be a combination of weaker economic data as well as multiple rate cuts by the central bank over the coming months.

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.
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.
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.
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.
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.
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.
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 must be able to afford higher monthly payments to qualify for a 15-year loan. Your salary, credit score and debt-to-income ratio — that is, how much debt you carry each month divided by your monthly income before taxes — play a more substantial role in the eligibility process for a 15-year mortgage than for a 30-year mortgage. If you have high-interest debt you’re trying to pay down, a lender will factor in those payments when considering if you should be approved for the loan.

A good 15-year mortgage rate would generally be considered anything at or below the national average rate, which is currently around 6.5%, as of early 2025, according to Bankrate.

More mortgage tools and resources

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.

About the Author

Katherine Watt

Former Staff Writer

Katherine Watt

Former Staff Writer

Katherine Watt is a former CNET Money writer focusing on mortgages, home equity and banking. She previously wrote about personal finance for NextAdvisor. Based in New York, Katherine graduated summa cum laude from Colgate University with a bachelor's degree in English literature.

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