Mortgage Term Comparison

15-Year vs 30-Year Mortgage:
Which should you choose?

The 15-year mortgage saves you a fortune in interest. The 30-year gives you flexibility. Here's exactly how they compare — and how to decide what's right for your life and budget.

Quick Answer

Choose a 30-year mortgage if you want lower monthly payments and more budget flexibility. Choose a 15-year mortgage if you can comfortably afford the higher payment and want to save $100,000+ in interest while owning your home free and clear in half the time.

Side-by-Side: The Real Numbers

Here's how a $400,000 loan compares at current average rates.

Factor 15-Year Fixed 30-Year Fixed
Typical rate ~5.75% - 6.25% ~6.25% - 7.00%
Monthly payment (P&I) ~$3,330 ~$2,490
Monthly difference +$840/month more $840/month less
Total interest paid ~$200,000 ~$497,000
Interest savings Save ~$297,000 —
Years to full ownership 15 years 30 years
Equity at year 5 ~$110,000 ~$32,000
Best for Debt-free sooner, massive interest savings Lower payments, budget flexibility, invest elsewhere

Pros & Cons at a Glance

15-Year Mortgage

Save $100K-$300K+ in interest vs 30-year
Lower interest rate — typically 0.5%-1% less
Own your home in 15 years — half the time
Build equity dramatically faster
Higher monthly payment — roughly 35-50% more per month
Harder to qualify — higher payment means stricter DTI requirements

30-Year Mortgage

Lower monthly payment — easier on your monthly budget
Qualify for more house — lower payment = higher purchase power
More budget flexibility — invest difference, build emergency fund
Can always pay extra — prepay when you can, skip when you can't
Much more total interest — $200K-$300K+ extra over life of loan
Slower equity building — takes ~10 years to build significant equity

Who Should Choose Each Option?

The right answer depends on your life, not just the math.

Choose 15-year if

  • • You have high, stable income
  • • You're near retirement
  • • You hate debt and want it gone
  • • You've maxed out retirement savings

Choose 30-year if

  • • You're a first-time buyer
  • • You want budget breathing room
  • • You plan to invest the difference
  • • You want to buy more house

Pro Strategy

  • • Get a 30-year for flexibility
  • • Pay extra like it's a 15-year
  • • Skip extra payments when needed
  • • Best of both worlds

See your actual payment options

Run the numbers with our calculator. See exactly what both options look like at today's rates.

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