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15 Year Fixed Conventional Loans

Financing a home doesn't have to be complicated. Whether you are looking to buy a home or refinance, conventional loans are simple, straightforward, and easy. This type of loan is the go-to-choice for most people with a good credit and financial profile.


You can be Pre Approved by the end of the day!

  • Low fixed rates

  • Payoff your loan sooner

  • Great refinance option

  • Shorter term gives you big interest savings!

Popular 15 Year Fixed Conventional Loan Topics

See today's best 15 Year Fixed Conventional Rates! We monitor our rates everyday to make sure that we are giving you the best mortgage at the lowest rate possible.

In this guide, we’ll break down the key differences between 15-year and 30-year conventional mortgages to help you make the best decision for your financial future.

Looking for ways to become mortgage-free sooner? Whether you're planning to take out a 15-year fixed conventional loan or already have a mortgage in place, there are several smart strategies to help you pay off your home loan faster.

If you're thinking about refinancing your mortgage—especially into a 15-year fixed conventional loan—you’re likely focused on the interest rate and potential savings. But one important factor you shouldn’t overlook is refinance closing costs.

Mortgage Rates for 15 Year Fixed Conventional Loans

Your mortgage rate is an important factor in your overall home payment and family budget. Our company is built to offer lower mortgage rates which will help make your home more affordable. 

On average, our mortgage rates are .326% lower than the national average. This equates to $23,836 in life of loan interest savingsSee details on rate savings calculation here.

Program Highlights

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Fixed Rates

No upfront mortgage insurance

Primary Residence, Second Homes and Investment Properties

620 minimum credit score

Down payments as low as 3%

Frequently Asked Questions

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15 year fixed Conventional loans are best for buyers or homeowners that have strong credit, stable income and want to pay off their loan faster.

Who are 15 year fixed Conventional loans best for?

Your total interest savings will depend on your exact loan amount, but on a $300,000 loan, the life of loan interest savings can be over $200,000.

How much interest can I save with a 15 year fixed Conventional loan vs a 30 year term?

Yes, first-time buyers can absolutely use a 15 year fixed conventional loan. In fact, those with strong credit and steady income may benefit from the faster payoff and long-term interest savings—though they should make sure the higher monthly payment fits comfortably within their budget.

Can a first-time home buyer use a 15 year fixed Conventional loan?

No, not at all. 15-year conventional loans require as little as 3% to 5% down, especially for qualified buyers with good credit. However, putting down 20% or more can help you avoid private mortgage insurance (PMI) and lower your overall loan costs even further.

Do 15 year fixed Conventional loans require a large down payment?

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15 Year Fixed Conventional Loans

Overview

A 15-year fixed-rate Conventional mortgage is a home loan that is not backed by a government agency like the FHA, VA, or USDA. Instead, it typically follows the lending guidelines set by Fannie Mae or Freddie Mac, making it a Conventional Conforming loan. These loans offer a fixed interest rate and a shorter 15-year repayment term, which helps homeowners build equity faster and pay significantly less interest over the life of the loan compared to a 30-year mortgage.


Conventional mortgages—especially the 15-year fixed—are popular among homebuyers who have strong credit scores and can afford slightly higher monthly payments in exchange for faster payoff and lower total interest. In fact, according to the U.S. Census Bureau, Conventional loans were used in about 76% of home purchases in 2022, with about 9% of total homebuyers opting for shorter terms like the 15-year option to accelerate their path to full homeownership.

What can I use a 15 year Conventional loan for?

Conventional loans can be used to purchase or refinance a primary residence, investment property, or a second home.  

What is the minimum credit score for a 15 year fixed Conventional loan? 

You will need a credit score of 620 or higher for a conventional loan. However, if your score is below 700, an FHA loan may provide you with more favorable terms.  

How much can I borrow with a 15 year fixed Conventional loan? 

Conventional loans must adhere to specific loan limits set by the Federal Housing Finance Agency (FHFA). These limits are revised annually and vary based on the location of the property. Starting in 2025, you can borrow up to $806,500. In high-cost areas, the limits may be higher, allowing borrowers in those regions to secure larger loans while still benefiting from the advantages of a conventional loan.

How much down payment do I need with a 15 year fixed Conventional loan? 

Conventional loans used to purchase a primary residence will require a 3% minimum down payment if you are a first time home buyer and a 5% minimum down payment if you are not a first-time buyer. First time home buyers are defined as anyone that has not owned a home in the past 3 years.

If you are purchasing a second home or investment property, you will need to make at least a 15% down payment. 

Do 15 year fixed Conventional loans require Private Mortgage Insurance (PMI)? 

Yes, Conventional loans will require Private Mortgage Insurance (PMI) if you make less than a 20% down payment or have less than 20% equity, if refinancing. However, the mortgage insurance for a 15 year term is less costly than mortgage insurance for a 30 year term. 

What is the max Debt to Income Ratio (DTI) for a 15 year fixed Conventional loan?

Your debt-to-income ratio is the percentage of your gross income that goes towards your monthly debts, including a proposed new mortgage payment. Conventional loans typically require that your monthly debts not exceed 50% of your gross qualifying income.

What documentation do I need to provide for a 15 year fixed Conventional loan? 

All Conventional loans will require that you fully document your income and assets. Standard documentation requirements include recent paystubs, last two years of W2s, and the last two years of tax returns, if self-employed. You will also need to document all liquid assets used for down payment and closing costs.

What types of properties can be financed with Conventional loans?

Conventional loans can be used to finance single family residences, multi-family properties up to 4 units, condominiums, townhomes, and manufactured homes.

When you are ready,
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Ready to get started? Great, click below. If you have questions, call us! Our hours are listed below.

901-504-4663

 

Monday - Thursday                         8am-8pm

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Travis Chapman

CEO

NMLS 64848

Cell: 901-289-8783

tchapman@localmortgage.com

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Derek Chapman

Vice President

NMLS 1339905

Cell: 901-701-6732

dchapman@localmortgage.com

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Chase Newell

Vice President

NMLS 1290069

Cell: 901-356-0568

cnewell@localmortgage.com

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