15-Year Mortgages Offer Lower Rates but Higher Payments, Creating a Dilemma for Homebuyers

15-year mortgage rates have dipped to an 11-month low of 5.36%, presenting a rare opportunity for borrowers to secure rates in the mid-5% range—a full percentage point lower than the current 30-year average of 6.44%. The tradeoff, however, is steep: monthly payments on a 15-year loan can run hundreds of dollars higher, making it a viable option only for those with stable incomes, robust savings, or refinancers seeking to retire mortgage-free.

For first-time buyers or households with tighter budgets, the 30-year mortgage remains the pragmatic choice, keeping housing costs NEAR the recommended 30% of income threshold. The divergence in rates underscores a broader trend of financial stratification in the housing market, where liquidity and long-term planning dictate access to the most favorable terms.