Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

Published: Feb 11, 2021 2 min read
White house with grey roof surrounded by greenery
Getty Images

The unfortunate truth is that the cost of renting or owning a home is a huge expense for a majority of Americans. A 30-year mortgage is a big reason why early retirement is out of reach for many as well.

As mortgage rates have fallen to the lowest levels in U.S. history because of the pandemic--currently between 2% and 3%-- this may not be true anymore.

But how so?

Five Words: Refinancing To A 15-year Mortgage

First, let’s keep in mind that 15-year mortgage loans have always had lower interest rates than longer-term mortgages because these short-term loans are viewed as less risky investments. Naturally, plummeting mortgage rates have then caused 15-year loans to have ultra-low interest rates compared to their 30-year counterparts.

As refinancing homeowners have already paid down a portion of their mortgage, refinancing down to a 15-year mortgage means that their monthly payments are more manageable, especially if their interest rate is lower.

This means that a 15-year refinanced mortgage may allow you to pay lower interest rates for fewer years, and therefore rid yourself of mortgage debt faster.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
You may be able to reduce your monthly payment or pay off your loan faster.
Click your state to get started and see your refinance rate today with Quicken Loans (NMLS #3030).
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas
Calculate Your Payment

Enter early retirement or watch your savings and/or investment portfolio grow faster and a huge weight is lifted off your shoulders.

This is why Quicken Loans urges Americans to calculate the cost of a 15-year loan now.

Is Now The Right Time? What If I Already Refinanced?

Here’s how to find out: answer a short Quicken Loans survey to view rates. It’s fast, easy, and your data is secure.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer