Traditionally, the 30-year fixed-rate mortgage has been the most accepted mortgage instrument for borrowers who seek steady and lower payments. On the other hand, adjustable-rate mortgages are availed of by the risk takers.

But recently, there has been increasing activity in the 15-year fixed-rate mortgage. One of the reasons for this is the relatively lower interest rates on the 15-year fixed rate loans. Rates on all loans have dropped this year, but rates on 15-year loans dropped more sharply in February and April compared to the 30-year fixed rate mortgages.

Also, recently observed, rates on 15-year loans have been about a quarter of a percentage point lower than those of 30-year loans.

Rates on 15-year loans are as low they have been since June 2003 when they reached 4.41 percent and at an average low of about 4.5 percent since January, according to the Mortgage Bankers Association.

Also, when it comes to savings, for example, borrowing $400,000 with a 4.375 percent interest on a 15-year loan, the average rate earlier this month, the borrower is expected to make a monthly payment of about $3,034 a month, compared with about $2,056 a month for a 30-year fixed-rate loan at a 4.625 percent average interest rate.

With 180 fewer payments than the 30-year loan, the borrower with that 15-year loan would pay $194,000 less in interest over the life of the mortgage.

The number of 15-year mortgages issued in February increased to 74,497 from 42,178 in January, according to First American CoreLogic, a real estate consulting company.

Also, first time home buyers with lower credit scores and less money for down payments have availed of the 15-year mortgages.