Definition: The mortgage rate 15 year term is a financial term that refers to the interest rate at which a borrower agrees to pay off their principal amount through a loan with a fixed rate for a period of up to 15 years, after which time it will revert to a floating rate. This type of mortgage rate allows borrowers to secure a higher debt-to-income ratio, but requires them to make regular payments towards the debt. The interest rate on a fixed-rate mortgage is typically lower than on a variable-rate mortgage because there are no changes in rates at each period, while the interest rate on a floating-rate mortgage adjusts over time based on market conditions. This makes it easier for borrowers with higher incomes and/or longer-term debt obligations to afford this type of mortgage. The term "mortgage 15 year rates" is used by lenders and consumers alike to refer to the specific fixed-rate mortgages that come with a 15-year term. These types of mortgages typically require borrowers to make monthly payments over the life of the loan, and are typically more expensive than other types of mortgage rates. In summary, "mortgage 15 year rates" refers to the interest rate on fixed-rate mortgages that come with a 15-year term, which is generally lower than variable-rate mortgages.
You've scored 50% OFF Factor 🤤
Forget the empty fridge stare-down. Factor delivers fresh meals to your door. Just heat & eat!
Click to sign up for FACTOR_ meals.