Is it true that the 15yr mortgage rate reduction is the same as the 20yr mortgage rate reduction?

The statement that the 15-year mortgage rate reduction is the same as the 20-year mortgage rate reduction is not true. Typically, mortgage rates are structured such that shorter-term loans like a 15-year mortgage usually have lower interest rates compared to longer-term loans such as a 20-year mortgage. This is because lenders perceive shorter loans as less risky, as they involve a shorter time frame for interest accrual.

In most cases, the interest rates for a 15-year and a 20-year loan will differ, with the 15-year loan rate being lower. Thus, borrowers should be aware that while both options may offer reductions compared to a 30-year mortgage, the specifics of the rate reductions are different between the 15-year and 20-year products. The unique characteristics of each mortgage term lead to variations in interest rates based on the time commitment and risk involved for the lender.