bank rates

Save On Interest Costs By Refinancing Or Buying With A 15-Year Loan At 2.75%

NASA Federal Credit Union is offering one of February’s best deals on 15-year fixed-rate home loans.

It’s charging borrowers nationwide just 2.75%, with no points, a 1% origination fee and a 60-day rate lock for purchase or refinance.

keys and house

That’s more than a third of a percentage point below the current average cost of 15-year loans – 3.09%, according to our latest survey of major lenders.

And compared to a 30-year loan, it’s more than a full percentage point below the average cost of 3.80% with 0.20 points.

This deal is available in every state except New Jersey, Hawaii and Alaska.

We think this deal will be hard to beat. But it doesn’t hurt to try.

Get started by searching Bankrate’s database for the best mortgage rates from scores of other lenders in your area.

Shorter-term loans like this one are particularly popular with borrowers who want to save tens of thousands of dollars in interest by paying off their loans more quickly.

See how much interest you’d save by paying off your home loan early using this 15-year vs. 30-year mortgage comparison calculator.

The biggest drawback to short-term loans is that the monthly payments are higher. For this loan, the principal and interest payment would be $679 a month for every $100,000 borrowed, or $1,357 on a $200,000 loan.

You can use this mortgage calculator to determine the monthly payments for the amount you want to borrow with this or any home loan.

It will also provide a month-by-month amortization schedule that shows how much you’ve reduced your debt and how much you still owe if you want to pay off the loan.

NASA FCU is headquartered in Washington, D.C., and enjoys an A+ rating from the Better Business Bureau.

To qualify for this deal, you must:

  • Be borrowing $417,000 or less.
  • Have a credit score of 740 or better.
  • Be buying a home or refinancing no more than the outstanding balance of your current home loan.
  • Make a down payment of at least 20% if you’re buying.
  • Hold 20% or more of the equity in your home if you are refinancing.

You’ll also need to be a member of NASA FCU in order to qualify. If you don’t qualify for membership through your employer or group affiliation, you can join for free by signing up for the National Space Society, an independent, educational, grassroots nonprofit organization dedicated to the creation of a space-faring civilization.

In addition, you’ll need to open a savings account with NASA FCU. It only requires a $5 deposit, and, as long as $5 stays in your account, you’re eligible for any benefit from the credit union. We typically don’t write about loans that come with a checking or savings account attached, but because this is a good deal – and widely available – it’s worth consideration.

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (0)
1 Star2 Stars3 Stars4 Stars5 Stars (36 votes, average: 4.36 out of 5)
No Existing Comments

Comments are closed.