A 15-year fixed-rate mortgage offers a lower interest rate than a 30-year or a 20-year mortgage and will save you a significant amount of interest over the life of a loan. You will build up equity in your home quickly, which can allow you to move to a more expensive home sooner. If you are nearing retirement, this shorter-term allows you to own your home sooner. A 15 years fixed interest rate is suitable for people seeking to pay the loan quickly and thus prefer 15 years fixed rate as compare to a variable rate or 30 years fixed. The term of 15 year fixed loan program is short as compared to 30 years fixed. Thus, monthly payments are higher but the loan amount pays off quickly and you pay less total interest amount over the life of the loan.
15-year loan pays off quickly and you pay less total interest amount over the loan period.
Loan can be refinanced if rate drops.
Monthly payments are considerably high due to 15 years period condition.
Monthly payment does not change if interest drop.