Consider a 15 Year Fixed Mortgage at a 4.125 Interest Rate

By: | March 18th, 2010

Mar. 18, 2010 ( – With mortgage rates close to an all time record low (30-yr 4.75%, 15-yr 4.125%) consumers are overwhelmingly choosing fixed rate mortgages over adjustable rate mortgages.

Matter of fact, according to Freddie Mac (FRE) , in January only 6% of new mortgages originated were adjustable rate mortgages.

15 year fixed mortgage ratesMany consumers are choosing 15 year fixed mortgages in order to pay off the balance in half the time (compared to a 30-yr). The difference in interest paid on a 15 year compared to a 30 year over the life of the loan is huge, and the difference in the interest rate on a 15 year fixed, compared to that of a 30 year fixed, is larger than it’s been historically. 15 year fixed rates are 0.625 below 30 year fixed rates.

Did you know that in 2007 (6.03%), and 2006 (6.07%)  15 year fixed mortgage rates averaged over 6%?

Looking for low fixed mortgage rates? Seach local 15 and 30 year mortgage rates.

For some it’s surprising just how close the two payments are together considering the term is cut in half on the 15-yr.

On a $200,000 mortgage, amortized for 15 years at a fixed interest rate of 4.125%, the principal and interest payment per month is $1,491.94. Compare that to the same loan amount, amortized for 30 years at a fixed rate of 4.75%, principal and interest payment $1,043.29.

With underwriting guidelines stricter than ever, it’s mostly the very well-qualified consumers obtaining new mortgages, either through a purchase or refi. Many times it’s these A plus credit rating borrowers who have the ability to pay on a 15 year note.

For borrowers who may not have a lot of extra cash flow, and first time home buyers especially, the 30 year fixed offers flexibility and stretching to a 15-yr may not be a good idea.

To display 30 and 15 year fixed mortgage rates on your website or blog use our free today’s mortgage rates widget.

Rates discussed in this article are available today to well-qualified consumers paying a standard .07 to 1 point origination as verified by our research of wholesale lenders’ rate sheets. The rates we report, not the national averages, are the rates consumers should be aware of and willing to accept.


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"I was looking at a 4.375% with Wells Fargo, my local bank, before stumbling upon via a google search. They hooked me up with a longstanding savings and loan bank of which I closed on a 30 year fixed rate of 3.75% with. I'd recommend anybody looking at refinancing or buying a home give free rate a shot."

-Joe Klien, Detroit, MI