15-year Mortgage Refinance Rates: Compare Current Rates (2025)

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Refinancing into a 15-year fixed-rate mortgage can help homeowners save on interest and pay off their mortgages faster.

Check out today's 15-year refinance rates to see if one of these loans makes sense for you.

15-year refinance rates

In August, 15-year refinance rates averaged 5.90%, according to Zillow data. This is 44 basis points down from the month before. Refinance rates have been somewhat volatile recently, but they're trending much lower this month.

See how today's 15-year refinance rates compare to other types of mortgage refinance loans.

Current trends in 15-year refinance rates

Current market conditions

Record high inflation pushed mortgage rates up across the board over the past few years. Inflation has come down a lot since it peaked in 2022, but it's still relatively high.

Once inflation slows further, mortgage rates should go down. But because inflation has been sticky so far this year, we'll likely need to wait longer than initially expected for lower rates.

Predictions for rate movements in 2024

If you're thinking about refinancing, you could have an opportunity to do so if rates go down later in 2024. But they probably won't drop significantly this year, so it may be better to wait until 2025 or later.

Understanding 15-year refinance rates

How these rates are determined

Mortgage rates are largely determined by investor demand, which in turn is influenced by what's going on in the broader U.S. economy.

In general, when the economy is strong or inflation is high, mortgage rates go up. When economic growth is slow or we're in a recession, mortgage rates typically go down.

Rates also depend on the financial profile of the borrower getting a mortgage. The more creditworthy you are, the better your rate.

Benefits and drawbacks of refinancing to a 15-year mortgage

"The benefits are that you will pay off your mortgage sooner," says Jose Hernandez, a real estate agent with Coldwell Banker Realty in Chicago. "However, the drawback is that your monthly payment will be much higher compared to a 30-year mortgage."

Hernandez advises that borrowers should only opt for a 15-year mortgage if they can lower their interest rate by more than two percentage points or if their new mortgage payment will be similar to their current one.

"The key is to have a monthly payment that you will be able to afford every month without struggling," he says.

Get a lower rate

Mortgage rates on a 15-year refinance are lower than30-year refinance rates. The shorter the term, the lower your rate.

Build equity faster

Because you're paying off your mortgage faster, you'll build equity more quickly than you would with a 30-year term.

Less interest paid over the life of the loan

Because the terms are shorter and interest rates are lower, borrowers with a 15-year mortgage will pay less in interest over the life of the loan compared to a borrower with a 30-year mortgage.

Pay off your mortgage sooner

If you plan to stay in your home long term, getting a 15-year mortgage can be beneficial because you'll own your home outright much faster than with a 30-year mortgage.

Higher monthly payments

The downside of a shorter mortgage term is that you'll have larger monthly payments. This leaves less money in your budget for other needs, wants, or financial goals.

Harder to qualify for

If the higher monthly payment that comes with a 15-year mortgage pushes your debt-to-income ratio too high, you might not qualify to refinance.

How to get the best 15-year refinance rate

Improve your credit score

You can pay down debt, limit your credit card usage, or ask your credit card issuer for a credit line increase to improve your credit score.

Shop around and compare lender offers

Mortgage rates and loan fees vary by lender, so be sure to compare offers from at least two or three different lenders to see who can offer you the best overall deal.

If you like your current mortgage lender, you may decide to get preapproved there first. But don't assume that they'll still have the best mortgage refinance rate — there may be another lender that can offer you a better deal now.

Calculating savings and costs

Mortgage calculator

Use Insider's free mortgage calculator to see how much you could save on interest by choosing a 15-year term for your mortgage refinance.

Considering closing costs and break-even points

Refinancing is typically only worth it if you plan to stay in the home long enough that you pass the break-even point. This is the point at which you've recouped the amount you spent on the refinance.

For example, say you paid $2,000 in closing costs to refinance and the new mortgage is $100 less per month than your original mortgage. Your break-even point is the point at which you've saved enough each month to equal $2,000.

To find this, divide 2,000 by 100. If 2,000 ÷ 100 = 20, then that means it would take 20 months, or a year and eight months, to break even.

15-year cash-out refinance

When you refinance your mortgage, you'll need to decide whether you want to do a rate-and-term or cash-out refinance. The difference is that you won't be taking any equity out of your home with a rate-and-term refinance.

A cash-out refinance lets you tap into some of the money you've gained in your home and convert it into cash. You'll get that cash at closing and you can use it for whatever you want, such as a home improvement or to pay off other debts.

15-year refinance FAQs