Conventional 15-Year Fixed Mortgage: The Mortgage For Faster Equity and Lower Interest
In this guide, we’ll answer exactly what a Conventional 15-Year Fixed Mortgage is, who it’s best for, and why it remains the most popular home loan option today.
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What Is a 15-Year Fixed Conventional Mortgage?
- Same principal + interest payment every month
- Predictable budgeting—no surprises if market rates rise
- Can be used for primary residences, second homes, or investment properties
Quick Answer
A 15-year fixed conventional loan is ideal if you want a stable payment for a shorter term and can pay a 3%–5% down payment (or 20% to skip PMI).
Why Consider a Conventional 15-Year Fixed Loan?
Here's why people choose a 15-year fixed mortgage
Lower Interest Rates
15-year fixed-rate mortgages typically come with lower interest rates than a 30-year fixed.
Lower Total Cost
Although monthly payments are higher, homeowners with a 15-year fixed mortgage pay less interest over the life of the loan.
Pay Off Mortgage Faster
As the name suggests, you’ll be able to pay off your mortgage in 15 years instead of 30 without any extra payments made.
Build Equity Faster
Because of higher monthly payments and less interest owed over the life of the loan, you’ll build equity faster than with a 30-year mortgage.
Pro Tip
If you want to pay off your mortgage early or build extra equity without the higher payments of a 15-year mortgage, you can make extra payments on your principal with another mortgage type. Some lenders charge prepayment penalties, so be sure to check the terms of your mortgage to avoid getting hit with extra fees.
Eligibility Requirements in 2025
Credit Score
620 minimum (680+ for best rates)
Down Payment
3%–5% (minimum) – 20%+ to skip PMI
Debt-to-Income (DTI)
≤ 45% (varies by borrower profile)
Mortgage Insurance (or PMI)
Required if you put < 20% down
Property Types Allowed
Primary home, secondary home, condo, investment
15-Year Fixed Conventional Loan vs. Other Mortgage Options
15-Year Fixed Conventional
FHA Loan
Adjustable-Rate Mortgage (ARM)
Which mortgage is better: FHA or conventional?
If you have a credit score of 680+ and can manage 3–5% down, a conventional loan often has lower overall costs. FHA is ideal if your credit is in the mid-600s and you need more lenient guidelines.
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How to Apply for a Conventional 15-Year Fixed Mortgage
Pre-Qualification (60 Seconds)
Answer a few questions online or with a UMortgage Loan Originator (LO).
Get Custom Loan Options
We’ll show you rates, payment estimates, and a closing cost breakdown.
Lock In Your Interest Rate
Choose to lock when you see a competitive rate to avoid surprises down the line.
Underwriting and Closing Your Loan
Submit documentation, clear underwriting, and close on your timeline.
Frequently Asked Questions
Wondering if a 15-year fixed conventional loan makes sense to you? Get clear, expert answers to the most common questions—cost, timing, benefits, and more!
Here's Why UMortgage is Your Best Choice
Relationships, Not Transactions
We’re here for more than just your mortgage. We’ll stick with you beyond closing to help you gain financial freedom through homeownership.
Local & Nationwide Expertise
With licensed loan officers across the country and deep knowledge of your local market, we’ll help you buy with confidence anywhere you call home.
Fast, Transparent Closings
We communicate with you every step of the homebuying or refinance process so you can close quickly without any hidden fees or surprises.