There are seven factors that impact the 15-year mortgage rate you’re offered, including:
15-year fixed rate if you can commit to a higher payment for the term of the loan. If you’re worried about your job stability or plan for an enormous expense (like a new car or a college education) you’re better off making extra payments on a 30-year mortgage to pay your mortgage off early.
An adjustable-rate mortgage (ARM) offers a lower initial rate for a set time. Once the “teaser” rate period ends, your rate will adjust based on the ARM terms you chose, which could cause a big jump in your monthly payment. With a fixed-rate loan, your payments are the same for the loan’s entire term.