Good credit: For a conventional loan, most lenders require a minimum credit score of 620.While eligibility criteria for a 15-year mortgage can vary by lender, there are a few common requirements that you’ll typically have to meet, including: In general, one discount point is equal to 1% of your loan amount. You’ll also end up paying more if you opt to buy mortgage discount points, which can lower your interest rate. Origination fee: 1% to 2% of the loan amount.Appraisal fee: $300 to $600 (depending on size of the home). Some typical fees you can expect include: Closing costs usually range from 2% to 5% of your loan amount. In addition to interest, remember to consider the closing costs you’ll pay with a mortgage. This type of 15-year mortgage has a fixed interest rate, which means your rate and payment will stay the same throughout the life of the loan. The average interest rate for a 15-year mortgage is currently 6.55% compared to the 30-year mortgage rate of 7.12%. While the monthly payments are higher with a 15-year mortgage than what you’d pay with a 30-year loan, you end up paying less in interest over the life of the loan due to its shorter time span. While these expenses aren’t part of your mortgage payment, it’s a good idea to include them as part of your monthly housing budget.Īfter you’ve entered your information, click “calculate” to see a breakdown of your monthly payments along with an amortization schedule that divides your monthly payments by principal and interest over time. For example, you could include property insurance costs, mortgage insurance premiums (MIP) or homeowners association (HOA) fees. If you click on the “additional options” button, you can input even more detailed information to better understand what you can expect to pay. To begin, you’ll need to provide the home price, your planned down payment, loan interest rate and loan repayment term. Our 15-year mortgage calculator lets you see how different variables can impact your overall loan cost. How to Use the 15-year Mortgage Calculator
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