The answer to your question depends on several factors. How financially secure are you? How large is your loan? Do you live in a state (NY/FL for two) with high closing costs, or a state (MO, IL, CO) with low closing costs? What costs would you be charged (either upfront, or added to the loan) to obtain that rate? When clients ask me about 15 year loans, I always cover all these topics before giving a recommendation. The last thing a lender (or a homeowner!) wants is for a loan's payments to become a burden to the borrower. Yes, you'll save a boatload of interest. The first step, however, is sitting down (in person or not) with a mortgage professional to discuss your situation in detail. IF your loan officer doesn't bring up most/all of the points above, you might consider alternatives. Just because you qualify for a loan doesn't mean it's your best solution. Questions? I'm always glad to help, and write loans nationally.