3 Strategies to Get a Great 15-Year Mortgage Rate Right Now

Mortgage rates have come down a bit from their peak lately, but remain elevated compared to much of recent history. The 15-year mortgage is often used by homeowners who want a low rate and quicker payoff and has a 6.63% average interest rate as of the latest data from the Mortgage Bankers Association. While this is significantly less than the 7.14% peak we saw in late 2023, it is nearly triple the all-time low, which occurred in 2021.

Having said that, keep in mind that the average mortgage rate is just that -- an average. Here are a couple of strategies you can use to make sure you get the lowest possible mortgage rate.

1. Work on your credit score

You might be surprised at the difference in rates offered to buyers with so-so credit and borrowers with excellent credit. According to credit scoring website myFICO.com, the average borrower in the 640-659 FICO® Score range gets a 15-year mortgage rate of 6.752%. Meanwhile, the average borrower in the 700-759 range (generally considered to be very good credit) gets a 5.931% rate.

On a $400,000 mortgage, this makes a difference of $179 per month. Over the life of a 15-year mortgage, this amounts to $32,220 in interest savings.

You can use our guide to the FICO® Score for some helpful tips on how to boost your score, but here are a few to consider:

• Only apply for new credit when you need to.
• Keep your credit card balances below 30% of your available credit.
• Consider an installment loan (like a personal loan) to consolidate revolving credit card debt.
• Most importantly, make sure you pay your bills on time every month. Even one missed payment can have a major impact.

2. Be a more qualified home buyer

Getting the best rates isn't just about having a strong credit score. While that is definitely an important piece of the puzzle, there are other ways to become a more qualified buyer in the eyes of mortgage lenders.

For example, making a higher down payment makes you a lower-risk borrower, as it shows you have more skin in the game. Having a steady employment record is another big factor. And being able to show plenty of cash reserves in the bank gives the lender peace of mind that if you lose your job, you'll have lots of cushion to keep making payments.

3. Shop around, and then shop around some more

If you ask me what the best 15-year mortgage rate is today, that would be an impossible question to answer. Lenders have different ways of evaluating borrowers and you might be surprised at the different rates mortgage lenders will offer to the exact same person.

Because of this, the only way to find the lowest possible 15-year mortgage rate is by shopping around. And I don't just mean looking at the posted rates on a lender's website -- I mean actually filling out a pre-approval application, agreeing to a credit check, and getting personalized rate offers. Even a seemingly small difference in rates can save you thousands of dollars over the life of a 15-year loan, so it's worth a few hours of your time to shop around.

The bottom line on getting the best mortgage rates

The key takeaway is that while rates are generally determined by overall market forces, there's a lot you can control. By improving your credit, showing lenders what they want to see, and applying for loans with several of the top mortgage lenders, you'll be in a great position to find the best interest rate you can get.