For home buyers and homeowners
15-Year Fixed Mortgages in Michigan
A 15-year fixed-rate mortgage is for buyers and refinancers who want to pay off their loan faster and pay less total interest. The tradeoff is a higher payment every month, so the test is whether it still fits in your leanest month.
- No credit pull to talk
- Licensed mortgage broker, NMLS 2041154
15-Year Fixed Mortgage
Key benefits
Usually a Lower Rate
Fifteen year rates usually run below thirty year rates for the same borrower.
Equity Builds Sooner
More of each payment goes to principal from the first month.
Less Total Interest
A shorter term, usually at a lower rate, means far less interest over the life of the loan.
Principal and Interest Set for the Full Term
Taxes and insurance can still change the full payment.
What fifteen years saves, and what it demands
The interest difference is significant. So is the commitment. The question is not which is cheaper overall, it is whether the higher payment is comfortable in a bad year as well as a good one.
| Consideration | Fifteen year | What it means |
|---|---|---|
| What the shorter term saves you | Roughly half the interest of a thirty, sometimes more, because the balance falls so much faster. | The main argument for it. |
| Equity after five years | Far ahead of a thirty on the same loan, because more of every payment is principal from month one. | Matters if you expect to sell or refinance. |
| The payment jump you must absorb | Meaningfully higher every month, with no option to drop back. | Test it against your leanest month, not your best. |
| Effect on what you can borrow | Reduces it. The larger payment consumes debt ratio. | A fifteen can price you out of the house a thirty would buy. |
| Down payment expected | The same low-down-payment options remain open. | Short term does not mean more money down. |
| Changing your mind later | Refinancing a thirty into a fifteen is normal. Going the other way costs you the progress. | Starting with a thirty and paying extra keeps both doors open. |
Compare a shorter term in the calculator
Guidelines
Guidelines for this loan
What lenders usually check on a fifteen. The deciding test is the payment, so read these with your budget beside you.
Credit Score
Set by the program and the lender; many conventional lenders look for 620 or higher.
Read the guideDTI Ratio
Ideally below 43%.
Read the guideAvailable Loan Types
FHA, Conventional, VA, and Jumbo.
Read the guidePrepayment
No prepayment penalty on a conforming conventional, FHA, VA or USDA loan, so extra principal shortens the payoff.
Read the guideOfficial sources
Check the rules at the source
Program guidelines change. These are the official pages we check them against.
Questions about this loan
If yours is not here, ask it on the call. There are no dumb questions.
Is it harder to qualify for a fifteen year?
It can be. The larger payment uses more of your debt-to-income ratio, so the same income qualifies for a smaller loan on a fifteen than on a thirty.
Can I refinance my thirty into a fifteen?
Yes, if you qualify for the new loan when you apply. A refinance has its own closing costs, so compare them with the interest a fifteen would save.
What is the main advantage over a thirty?
Less total interest and faster equity, in exchange for a higher required payment.
Is there a penalty for paying it off early?
FHA, VA, USDA and conforming conventional loans carry no prepayment penalty. Ask before you sign on any jumbo or portfolio loan, and check the Prepayment Penalty line on page 1 of your Loan Estimate.
Can I still make a low down payment on a fifteen?
Yes, loan type permitting. The low down payment options on a conventional loan, including the ones for first-time buyers, work with the shorter term too. Our guide to low-down-payment mortgages lists each program’s minimum.
Does Michigan change the fifteen year math?
It changes the tax line in the payment you test. The year after a Michigan home sells, its taxable value resets to half of the assessor’s market value, so the seller’s tax bill is not your tax bill. Run the fifteen year payment against the tax bill you will pay, not the one on the listing. Estimate the tax for an address.
What our clients say
As a first-time homebuyer in Ferndale, I was unsure of some things. Samantha was awesome. She was extremely helpful and made sure I understood every part of the process.
Align Lending helped make purchasing my home in Madison Heights a smooth experience. I appreciated the regular updates and clear explanations along the way.
Can’t say enough great things about Samantha and her team at Align Lending! Highly recommend
Individual experiences. Results vary.
Ask Samantha whether this loan fits
Bring your leanest monthly budget, not your best one. Samantha will test the fifteen year payment against it and show you the thirty beside it.
- 1
Tell us what you are trying to do
Not what product you want. What you are actually trying to accomplish.
- 2
We look at your situation
Samantha works out what matters most for you specifically.
- 3
You leave with a plan
Your options, the tradeoffs, and your next step. No obligation to go further.
Start with your question
Talk it through firstAlign Lending LLC, NMLS #2041154, is a mortgage broker. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. Program guidelines on this page are general and change over time; they are not a credit decision, a preapproval, a commitment to lend, or an offer of credit. Approval depends on your full application, the property and the lender's current guidelines.
