15-year fixed mortgage

Some fixed-rate mortgages last for different lengths of time. A 15-year fixed mortgage uses one interest rate for the whole loan and is scheduled to be repaid in 15 years. It is a term length, not a different kind of interest-rate product. A 30-year fixed mortgage is the more common longer term. This page does not say which term costs less or is better for a household.

CFPB describes a fixed-rate mortgage as one whose interest rate does not change and treats mortgage term as how long the borrower has to repay. Fifteen years is one common term named on that page.

Readers comparing fixed-rate products need to separate the rate idea from the repayment length.

Jordan takes a fixed-rate loan scheduled to be paid off in 15 years. The rate in the note does not change. A neighbor’s fixed-rate loan scheduled for 30 years is a different term, not a different rate type.

• 30-year fixed mortgage

A 15-year term is not an adjustable-rate mortgage and is not a balloon merely because it is shorter than 30 years.