15 vs 30 Year Mortgage: Which Loan Term Is Right for You?

Choosing between a 15-year and 30-year mortgage is one of the biggest financial decisions you'll make when buying a home. The difference goes far beyond monthly payments - it affects your total interest paid, equity building speed, and financial flexibility. Our mortgage calculator lets you compare both options instantly.

Use our amortization calculator to see exactly how your payments are allocated between principal and interest over each loan term.

Side-by-Side Comparison: $350,000 Loan

Assuming current rates (15-year: 5.75%, 30-year: 6.25%):

30-Year Mortgage

• Monthly payment: $2,155
• Total paid: $776,070
• Total interest: $426,070

15-Year Mortgage

• Monthly payment: $2,909
• Total paid: $523,545
• Total interest: $173,545

The 15-year loan saves $252,525 in interest but costs $754 more per month.

Pros and Cons

30-Year Advantages

• Lower monthly payment
• More affordable homes within reach
• Cash flow flexibility for other investments
• Can pay extra when able

15-Year Advantages

• Lower interest rate (typically 0.25-0.75% less)
• Massive interest savings
• Build equity twice as fast
• Mortgage-free sooner

Making the Decision

Choose 30-year if:

• Monthly budget is tight
• You have other high-interest debt
• You want to invest the difference
• Job stability is uncertain

Choose 15-year if:

• You can comfortably afford higher payments
• You want to minimize total cost
• You're closer to retirement
• You prioritize being debt-free

Frequently Asked Questions

Can I pay off a 30-year mortgage early?

Yes, and this gives you the best of both worlds: lower required payment but the option to pay extra. Just $200 extra monthly on the 30-year example saves $77,000 in interest and pays it off in 22 years.

Are rates always lower on 15-year mortgages?

Almost always, typically by 0.25-0.75%. Lenders take less risk with shorter loans because there's less time for things to go wrong.

What about 20-year mortgages?

A 20-year mortgage offers a middle ground: lower rate than 30-year, lower payment than 15-year. Not all lenders offer them, but they're worth asking about.