30 Year Mortgages vs 15 Year Mortgages

There are several different types of mortgage loans available to homebuyers and homeowners who are refinancing their current mortgages.  30 year mortgages are the most popular. When figuring out which loan is best for your situation, the first thing you should decide on is whether or not you want a loan with a fixed mortgage rate or an adjustable mortgage rate.

After deciding on the type of rate, you then have to decide on the term of the mortgage loan. Terms vary from as short as 1 year mortgage for an adjustable rate loan and as long as 30 year for a fixed rate loan. Mortgage rates today on all types of loans are just above record lows, so right now is a very good time to buy or refinance your current mortgage.

Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
30 yr fixed refi in 23223, All points, Credit score: 740+     Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
30 yr fixed Mortgage Loan from Ally Bank
Ally Bank
https://www.brimg.net/system/img/inst/10271_logo.gif
300000
Refinance
4.608
4.500
USD
Ally Bank Logo
NMLS # 181005
(877) 260 - 8762
at 0.100 pts
45 day lock rate
Est payment: $1,520.06
Fees in APR: $3,460
Thanks for the inquiry! 
 
30 yr fixed Mortgage Loan from Sol Mortgage
Sol Mortgage
https://www.brimg.net/system/img/inst/10262_logo.gif
300000
Refinance
9.282
9.125
USD
Sol Mortgage Logo
NMLS # 53112
at 0.100 pts
30 day lock rate
Est payment: $2,440.90
Fees in APR: $3,838
Thanks for the inquiry! 
 
30 yr fixed Mortgage Loan from CIT Bank
CIT Bank
https://www.brimg.net/system/img/inst/10026_logo.gif
300000
Refinance
9.277
9.125
USD
CIT Bank Logo
NMLS # 541760
at 0.100 pts
45 day lock rate
Est payment: $2,440.90
Fees in APR: $3,690
Thank you for your inquiry! We look forward to working with you. 
 
30 yr fixed Mortgage Loan from ConsumerDirect Mortgage, a division of First Bank
ConsumerDirect Mortgage, a division of First Bank
https://www.brimg.net/system/img/inst/8087_logo.gif
300000
Refinance
4.292
4.125
USD
ConsumerDirect Mortgage, a division of First Bank Logo
NMLS # 472433
at 1.000 pts
30 day lock rate
Est payment: $1,453.95
Fees in APR: $2,914
 
30 yr fixed Mortgage Loan from HomeDirect Mortgage
HomeDirect Mortgage
https://www.brimg.net/system/img/inst/10447_logo.gif
300000
Refinance
4.416
4.250
USD
HomeDirect Mortgage Logo
NMLS # 403501
at 1.000 pts
30 day lock rate
Est payment: $1,475.82
Fees in APR: $2,841
 
 
30 yr fixed Mortgage Loan from ConsumerDirect Mortgage, a division of First Bank
ConsumerDirect Mortgage, a division of First Bank
https://www.brimg.net/system/img/inst/8087_logo.gif
300000
Refinance
4.394
4.375
USD
ConsumerDirect Mortgage, a division of First Bank Logo
NMLS # 472433
at 0.000 pts
30 day lock rate
Est payment: $1,497.86
Fees in APR: $675
 
30 yr fixed Mortgage Loan from Sol Mortgage
Sol Mortgage
https://www.brimg.net/system/img/inst/10262_logo.gif
300000
Refinance
4.460
4.460
USD
Sol Mortgage Logo
NMLS # 53112
at 0.000 pts
30 day lock rate
Est payment: $1,512.93
Fees in APR: None
Thanks for the inquiry! 
 
30 yr fixed Mortgage Loan from HomeDirect Mortgage
HomeDirect Mortgage
https://www.brimg.net/system/img/inst/10447_logo.gif
300000
Refinance
4.500
4.500
USD
HomeDirect Mortgage Logo
NMLS # 403501
at 0.000 pts
30 day lock rate
Est payment: $1,520.06
Fees in APR: None
 
 
30 yr fixed Mortgage Loan from Ally Bank
Ally Bank
https://www.brimg.net/system/img/inst/10271_logo.gif
300000
Refinance
4.772
4.750
USD
Ally Bank Logo
NMLS # 181005
(877) 260 - 8762
at 0.000 pts
45 day lock rate
Est payment: $1,564.94
Fees in APR: $749
Thanks for the inquiry! 
 
30 yr fixed Mortgage Loan from LoanLock
LoanLock
https://www.brimg.net/system/img/inst/9948_logo.gif
300000
Refinance
4.250
4.250
USD
LoanLock Logo
NMLS # 237507
(877) 387 - 2804
at 0.000 pts
30 day lock rate
Est payment: $1,475.82
Fees in APR: None
 
 
30 yr fixed Mortgage Loan from Citibank, N. A.
Citibank, N. A.
https://www.brimg.net/system/img/inst/8189_logo.gif
300000
Refinance
4.672
4.625
USD
Citibank, N. A. Logo
NMLS # 412915
(877) 387 - 1820
at 0.000 pts
60 day lock rate
Est payment: $1,542.42
Fees in APR: $1,635
 
 
30 yr fixed Mortgage Loan from CIT Bank
CIT Bank
https://www.brimg.net/system/img/inst/10026_logo.gif
300000
Refinance
9.490
9.125
USD
CIT Bank Logo
NMLS # 541760
at 1.100 pts
45 day lock rate
Est payment: $2,440.90
Fees in APR: $6,162
Thank you for your inquiry! We look forward to working with you. 
 
30 yr fixed Mortgage Loan from Sol Mortgage
Sol Mortgage
https://www.brimg.net/system/img/inst/10262_logo.gif
300000
Refinance
9.461
9.125
USD
Sol Mortgage Logo
NMLS # 53112
at 1.100 pts
30 day lock rate
Est payment: $2,440.90
Fees in APR: $5,430
Thanks for the inquiry! 
 
30 yr fixed mtg refi Mortgage Loan from Bank of Oak Ridge
Bank of Oak Ridge
300000
Refinance
4.420
4.375
USD
Bank of Oak Ridge
4.420%
1/17/2019
4.375%
at 0.250 pts
60 day lock rate
Est payment: $1,497.86
Fees in APR: $853
 
 
30 yr fixed mtg refi Mortgage Loan from Northwest Federal Credit Union
Northwest Federal Credit Union
300000
Refinance
4.692
4.625
USD
Northwest Federal Credit Union
4.692%
1/17/2019
4.625%
at 0.750 pts
45 day lock rate
Est payment: $1,542.42
Fees in APR: $79
 
 
30 yr fixed mtg refi Mortgage Loan from Bank of America
Bank of America
300000
Refinance
4.341
4.250
USD
Bank of America
4.341%
1/16/2019
4.250%
at 0.644 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $1,289
 
 
30 yr fixed mtg refi Mortgage Loan from Apple Federal Credit Union
Apple Federal Credit Union
300000
Refinance
4.596
4.500
USD
Apple Federal Credit Union
4.596%
1/16/2019
4.500%
at 1.000 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $352
 
 
30 yr fixed mtg refi Mortgage Loan from Citizens Bank, NA
Citizens Bank, NA
300000
Refinance
4.687
4.625
USD
Citizens Bank, NA
4.687%
1/18/2019
4.625%
at 0.250 pts
60 day lock rate
Est payment: $1,542.42
Fees in APR: $1,408
 
 
30 yr fixed mtg refi Mortgage Loan from State Department Federal Credit Union
State Department Federal Credit Union
300000
Refinance
4.557
4.500
USD
State Department Federal Credit Union
4.557%
1/21/2019
4.500%
at 0.000 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $2,000
 
 
30 yr fixed mtg refi Mortgage Loan from Virginia Credit Union
Virginia Credit Union
300000
Refinance
4.579
4.500
USD
Virginia Credit Union
4.579%
1/22/2019
4.500%
at 0.375 pts
45 day lock rate
Est payment: $1,520.06
Fees in APR: $1,650
 
 
30 yr fixed mtg refi Mortgage Loan from Santander Bank, N.A.
Santander Bank, N.A.
300000
Refinance
4.683
4.625
USD
Santander Bank, N.A.
4.683%
1/22/2019
4.625%
at 0.000 pts
60 day lock rate
Est payment: $1,542.42
Fees in APR: $2,004
 
 
30 yr fixed mtg refi Mortgage Loan from Fulton Bank, NA
Fulton Bank, NA
300000
Refinance
4.779
4.750
USD
Fulton Bank, NA
4.779%
1/22/2019
4.750%
at 0.000 pts
60 day lock rate
Est payment: $1,564.94
Fees in APR: $1,007
 
 
30 yr fixed mtg refi Mortgage Loan from Raymond James Bank, NA
Raymond James Bank, NA
300000
Refinance
4.788
4.750
USD
Raymond James Bank, NA
4.788%
1/22/2019
4.750%
at 0.000 pts
45 day lock rate
Est payment: $1,564.94
Fees in APR: $1,299
 
 
30 yr fixed mtg refi Mortgage Loan from LincolnWay Community Bank
LincolnWay Community Bank
300000
Refinance
4.406
4.375
USD
LincolnWay Community Bank
4.406%
1/22/2019
4.375%
at 0.000 pts
30 day lock rate
Est payment: $1,497.86
Fees in APR: $1,085
 
 

Mortage Data Provided by Bankrate.com Many lenders have different rates on their own Websites than those posted on Bankrate.com. In order to get the Bankrate.com rate, please identify yourself as a Bankrate.com customer. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the lender you choose, please click here.

The rates above were collected by Bankrate.com on the dates specified. Rates are subject to change without notice and may vary from branch to branch. Rate/APR and terms may vary based on the creditworthiness of the individual and the extent to which the loan differs from the one used for Bankrate.com quotes. For criteria used in surveys of rates above, click here. These quotes are from banks, thrifts, and brokers, some of whom have paid for a link to their own Web site, where you can find additional information.






30 year mortgagesThere are some advantages to all types of loans and figuring out what is best for your situation will help you determine which loan fits your needs. The biggest factors to consider are how much the monthly mortgage payment will be and how long you plan to live in the house.

30 Year Mortgages Most Popular


By far, the most popular loan types are fixed rate mortgages because the mortgage interest rate on the loan never changes and as a result, the monthly mortgage payment of principal plus interest (P+I) never changes. The monthly payment can change if you have property taxes and homeowners insurance escrowed into the payment. 30 year mortgages are the most popular, the second most popular loans are 15 year mortgages.

In a recent refinance report released by Freddie Mac, 95 percent of those refinancing chose a fixed rate mortgage over an adjustable rate mortgage.

There are several different terms on fixed rate loans, the most popular terms are 30 years and 15 years. There are many lenders that also offer 20 year loans and 10 loans. During the housing boom when home prices were rising very quickly, some lenders also offered 40 year loans but those are almost non-existent these days.

Adjustable Mortgage Rates Better for Suited for Short Term


Adjustable mortgage rates loans are more inherently risky than fixed mortgage rate loans for the simple fact that the mortgage rate will eventually adjust. The most common type of adjustable rate loan is a 5/1 ARM, but there are also 1 year, 3 year, 7 year and 10 year ARMs.

With a 5/1 ARM, the mortgage rate stays the same for the first 5 years but can adjust after the initial period. There are usually annual caps and lifetime caps on how much the rate can adjust. A higher mortgage rate will increase your monthly mortgage payments. During the housing boom, many unsuspecting borrowers were steered into these types of loans and ended up losing their homes when the rate adjusted higher.

Adjustable rate mortgages are not all bad and they can be a useful tool for many homebuyers. Current short term adjustable mortgage rates are lower than long term rates. If you only plan to be in a home for a short period of time, you can have a lower monthly payment with a 5 year adjustable loan versus a 30 year loan.

Homeowners Take Advantage of Current Low Mortgage Rates


Historically, most people choose a 30 year term over a 15 year term but taking longer to payoff a mortgage loan will cost you a lot more in the long run, which we outline below. Mortgage rates today are just above record lows. Homeowners refinancing their mortgages are continuing to take advantage of this by lowering their payments and shortening their loan terms.

In the recent refinance report released by Freddie Mac, 37 percent of homeowners shorten their loan term when refinancing. 32 percent of homeowners who refinanced in the government's Home Affordable Refinance Program (HARP) took out a shorter-term loan. 40 percent of homeowners outside of HARP refinancing to a shorter term loan.

37 Percent Shortened Loan Term When Refinancing


15 Year Loans Better Than 30 Year Loans


Considering how low mortgage rates are, the trend towards a shorter term loan isn't a surprise but the biggest benefit to a 15 year loan over a 30 year loan is the amount of money you can save. Current 15 year rates are just about a full percentage point rate lower than 30 year rates.

A lower mortgage rate lowers the amount of mortgage interest you pay on the loan. Lowering the number of years to pay off the loan is the biggest savings. The one prohibitive factor for a 15 year loan versus a 30 year loan is that the monthly mortgage payments are higher for a 15 year loan. If you can afford the higher monthly payments, a 15 year term is the way to go.  Unfortunately, many people simply assume they can't afford a 15 year mortgage without looking into what their payments would actually be, much less weighing in the tremendous savings over the long term.

The following is an example of how much money can be saved in mortgage interest payments. Comparing a 15 year or a 10 year loan vs a 30 year loan. The longer the term, the lower the monthly payments are, so let's first look at the monthly payments for a $500,000 mortgage.

Monthly Mortgage Payment Difference


A mortgage for $500,000 financed for 30 years at 3.75 percent equals a monthly payment of $2,315.58.

$500,000 financed for 15 years at 2.875 percent equals a monthly payment of $3,422.93.

A loan for $500,000 financed for 10 years at 2.39 percent equals a monthly payment of $4,688.63.

The payment amount is higher for shorter term loans but if you can manage the payments its worth it. Take a look at the amount of mortgage interest paid over the life of the loan terms in this example.

Difference in Total Mortgage Interest Paid


$500,000 financed for 30 years at 3.75 percent will cost a total of $333,607.53 just in mortgage interest payments. When you include the principal paid the grand total comes to $833,607.53.

$500,000 financed for 15 years at 2.875 percent will cost a total of $116,127.15 in mortgage interest payments. When you include the principal paid the grand total comes to $616,127.15.

$500,000 financed for 10 years at 2.39 percent will cost a total of $2,623.07 in mortgage interest payments. When you include the principal paid the grand total comes to $562,623.07. Let's take a closer look at the total cost difference.

Shorter Term Mortgage Saves Hundreds of Thousands in Interest Payments



  • 30 year total cost $833,607.53

  • 15 year total cost $616,127.15

  • 10 year total cost $562,623.07


Going with a 15 year loan over a 30 year loan saves $217,000. Comparing a 30 year loan vs a 10 year loan saves $271,000. In this example you save a couple of hundreds of thousands of dollars in interest payments. You would be foolish not to take out a shorter term loan. Again that is if you can afford the monthly payments.

You should think real hard about a shorter term loan. Especially if the house you plan to buy is the last house you plan on ever owning.
 
 
Author: Brian McKay
October 8th, 2017
Posted in: Bank Mortgage Rates