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Should you refinance a 15-year mortgage?

Refinancing over a 15-year term can save you a significant amount of money you would have otherwise paid in interest.

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Mortgage refinancing Involves replacing your existing home loan with a new and improved one. It’s often a good idea if you can lower your monthly payments, lower your overall costs, or switch to a preferred interest rate type.

However, the benefits vary depending on the situation. If you’re considering refinancing to a 15-year mortgage, you’ll often pay more each month but pay off your home faster and save on overall interest costs. So, is it a good idea? You can easily explore your options here or plug in a few numbers into the table below to see if it’s worth it.

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Should you refinance a 15-year mortgage?

Here’s a closer look at the benefits of refinancing into a 15-year mortgage


  • Lower interest rates than a 30-year mortgage
  • Lower overall cost
  • Pay off your house quickly
  • Switch at a fixed rate
  • Gain access to home equity loans before and HELOCs
  • You may be able to drop PMI good luck

All things being equal, 15-year mortgages often come with lower interest rates than their 30-year counterparts. Shorter loan terms present less risk to lenders which means they don’t need to charge you more. Although monthly payments are more expensive, the overall cost is reduced because you are paying less interest for a shorter period of time.

For example, here’s the cost difference between a 15- and 30-year $300,000 mortgage, US Bank Mortgage Payment Calculator.

Loan Amount

Down payment

Loan conditions

interest rate

monthly salary

Fully paid

total cost

15 years



15 years








30 years





the difference



A 15-year term can save a new borrower more than $207,000 (about 66%) while only increasing monthly payments by $467 (about 20%).

Similarly, if you refinance into a 15-year mortgage and reduce your interest rate And/or shorten your term, this can help you save on the overall cost of your home. This move is especially advantageous when interest rates are lower than when you got your mortgage.

Also, if your current loan has an adjustable rate, refinancing may allow you to switch to a fixed rate. Fixed interest rates stay the same for the rest of your loan term, making for more predictable payments.

Making larger monthly payments helps you build equity faster. As a result, you can get early access to home equity loans and be able to get rid of private mortgage insurance sooner.

Determining whether a mortgage refinance loan makes sense for you is easy. You can now explore your local options here or enter your zip code in the table below to see what’s available near you.

Mobile app users click here.

How to refinance a 15 year mortgage

per A 15-year mortgage refinance, you need to find a new loan to replace your current loan. Before doing so, take inventory of your current debt by looking at your outstanding balance and interest rate.

From there, shop around to check the current interest rates in the market. Get quotes from several lenders to see where your mortgage refinance rates stand. If a lender can offer you meaningful savings, investigate their offer further (eg Closing costs, customer service reviews, loan processing times, etc.). Use the table below to start shopping around.

Mobile app users click here.

If you find an offer you can’t refuse, let the lender know about moving forward. From there, the process will be similar to your first mortgage:

  • Your lender will review and verify your finances, credit and assets
  • Your home will be appraised
  • The lender will write all the documents
  • You will review and sign everything
  • You will pay the closing costs

Once the loan is finalized, the lender will pay off your existing loan and you will start paying off your new loan.

15-year mortgage refinancing error

Refinancing to a 15-year mortgage is not a perfect solution. Here are some cons to know.


  • Larger monthly payments
  • Closing costs
  • Investing elsewhere can earn you more than your savings
  • Savings depends on the economy and available interest rates

If you refinance into a 15-year mortgage and have more than 15 years left on your existing loan, it could leave you with a higher monthly payment despite getting a lower interest rate. While making higher monthly payments can save you on interest and help you pay off your debt sooner, consider whether higher payments will strain your budget. Will you be able to comfortably afford the higher payments for the duration of the loan?

Another drawback to mortgage refinancing is closing costs. On average, you can expect to pay 2% to 6% of your loan balance in fees. On a $200,000 loan balance, you’re looking at anywhere from $4,000 to $12,000.

“Refinancing into a 15-year mortgage has the potential to save you money over time, but if the upfront costs and monthly payments cause financial stress in the near future, pursuing this option may not be practical or feasible right now,” says Brian Calvert, CEO of CFP and Bonfire Financial.

If rates have gone up since you got your mortgage, you may have trouble finding a better refinance rate. Mortgage refinances are generally less popular during and after rate hikes.

Finally, consider whether the money you’re investing in higher monthly mortgage payments could be better invested elsewhere. For example, can it make you earn more in the stock market or in retirement funds? You want to take the best course of action for your overall financial plan.

Should you refinance into a 15-year mortgage now?

“Refinancing your mortgage into a 15-year mortgage is not the best choice, especially in today’s market, where interest rates are relatively high,” says Cecil Staton, CFP CSLP and president of Arch Financial Planning.

He adds, “A 30-year mortgage is generally more convenient because it gives homeowners a much lower required monthly payment, leaving room in their budget to make additional payments on their mortgage or invest for retirement if they choose.”

However, every situation is different and A mortgage refi can still be beneficial in certain circumstances. You can explore the option by checking to see what offers are available now. Simply plug in your zip code here to start exploring your local options or compare lenders and rates using the table below.

Mobile app users click here.

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