When mortgage rates hit new record lows, they capture the attention of home buyers and homeowners. The 30-year fixed mortgage often gets most of the attention, but the 15-year fixed mortgage deserves attention as well. In the first week of 2021, the 30-year fixed mortgage rate hit 2.65 percent. While this represents a modest improvement from the previous week, it marks the lowest rate since 1971. The 15-year fixed mortgage rate dropped to 2.16 percent. This is the lowest rate since the 15-year mortgage rate started being tracked in 1991.

Both the 15-year and 30-year fixed mortgage rates have been hovering closer to record lows for a while, and the new record lows that have recently been established could make now the ideal time to buy a home or to refinance. A lower interest rate could establish more affordable payments for home buyers, and it could enhance the benefits of a refinance for homeowners. Before taking advantage of today’s low mortgage rates, however, applicants must decide between the 15-year and 30-year mortgages. While the 30-year fixed mortgage will have lower monthly payments, principal debt is reduced more quickly with a 15-year mortgage.

Because numerous factors must be explored and weighed before deciding which mortgage program to move forward with, it makes sense to request several quotes. Weigh affordability, your short-term and long-term plans for the home, the ability to optimize proceeds if you are refinancing and other factors. While there are exceptional benefits associated with locking in a lower interest rate today, all relevant factors must be considered so that you make the right decision for your specific situation and needs.

Contact one of our loan consultants to learn more.

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