15-Year vs 30-Year Mortgage: How to Choose
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Educational comparison only. Not a quote, recommendation, or offer of credit.
15-Year Mortgage vs 30-Year Mortgage: side by side
| 15-Year Mortgage | 30-Year Mortgage | |
|---|---|---|
| Term length | Loan is paid off in 15 years | Loan is paid off in 30 years |
| Monthly principal and interest | Higher per month for the same loan amount | Lower per month for the same loan amount |
| Interest rate | Usually lower than the 30 year for the same borrower | Usually higher than the 15 year for the same borrower |
| Equity build | Principal pays down quickly | Principal pays down slowly in the early years |
| Cash flow flexibility | Tighter, the larger payment is contractual | More room to redirect cash to savings, investing, or extra principal |
| Total interest if held to payoff | Lower over the life of the loan | Higher over the life of the loan |
| Refinance break even sensitivity | Shorter horizon, smaller savings cushion | Longer horizon, more room for rate moves to matter |
When each option tends to make more sense
When 15-year mortgage tends to fit
When a 15 year tends to fit
- Cash flow comfortably absorbs the larger payment plus reserves
- Goal is to be debt free before a specific milestone, like retirement
- Borrower is highly motivated to build equity quickly
- Other tax advantaged savings are already on track
When 30-year mortgage tends to fit
When a 30 year tends to fit
- Monthly cash flow flexibility matters more than the lowest total interest
- Borrower plans to invest the payment difference or pay extra optionally
- Income is variable or expected to grow, and a smaller required payment is safer
- The home may not be held for the full 30 year term
Run the numbers
- 15 vs 30 Year Comparison
See the payment and total interest side by side for a specific loan amount.
- Mortgage Payment Calculator
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- Amortization Calculator
Watch how principal and interest split changes month by month.
- Prepayment Calculator
See how extra principal on a 30 year compares to a 15 year.
Frequently asked questions
Is the 15 year always cheaper in total interest?
Can a 30 year be paid off in 15 years?
Why is the 15 year rate usually lower?
Does a 15 year hurt mortgage qualification?
What about a 20 year?
Does prepaying a 30 year cost anything?
Other decision guides
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