Add The 15-Year Fixed Rate Mortgage To Your Mortgage Comparison List

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It's a great time to look at 15-year fixed rate mortgages.

15-Year Fixed Rates Hit Bottom

If you've ever considered changing your mortgage from a 30-year term to a 15-year term, now is a terrific time to talk to your lender. According to Freddie Mac's weekly mortgage rate survey of roughly 125 U.S. lenders, at 3.30 percent, the 15-year fixed rate mortgage is at its lowest point in history.

It's a 1 percent improvement from February 2011 -- just 5 months ago.

The national rate of 3.30% doesn't come for free, however.

Based on average loan terms nationwide, borrowers "going 15" in Cincinnati, Loudoun County and everywhere else should expect to pay 0.6 discount points at closing. 1 discount point is equal to 1 percent of your loan size.

Click here for a comparison rate quote.

Save $47,000 Per $100,000 Borrowed

With low rates, 15-year fixed rate mortgage can be enticing; a primary benefit is the huge reduction in the long-term interest costs of your loan. The downside, though, is that monthly mortgage payments can feel large.

At today's mortgage rates, a 15-year fixed rate loan carries a principal + interest payment of $705.10 per $100,000 borrowed. This is a 46% increase over a comparable 30-year fixed rate loan. If you can stomach the bigger payments, though, you'll reap $47,000 in interest payments savings per $100,000 borrowed on your way to paying off your loan in full.

Those saved monies can be used to fund things such as college, home improvement, and retirement, among others.

The downside, though, is that once you've committed to a 15-year fixed rate mortgage, you can't "switch back" to a 30-year loan. At least, not without a refinance. And refinances can be costly. Therefore, be sure of what you're doing.

See Rates For A 15-Year Fixed Rate Mortgage

15-year fixed rate mortgages are cheap, and there are plenty of zero-cost options available, too. The first step is to get a rate quote and see how much you'll save.

Click here for a comparison rate quote.