15 vs 30 Year Mortgage: Which Term is Right for You?
The choice between a 15-year and 30-year mortgage affects your monthly payment, total interest paid, and how quickly you build equity.
15-year mortgage
Higher monthly payments but significantly lower interest rate and far less total interest. You own your home in half the time.
30-year mortgage
Lower monthly payments, making homeownership more accessible. However, you pay much more in total interest over the life of the loan.
Why the term matters
On a $300,000 mortgage at 6%, the 30-year option costs about $347,000 in total interest vs $155,000 for 15 years—nearly $200,000 in savings. But the 15-year payment is about $700/month higher.
Comparison table
| Aspect | Mortgage Calculator (15-year) | Mortgage Calculator (30-year) |
|---|---|---|
| Monthly payment | Higher (~40% more) | Lower, more affordable |
| Interest rate | Usually 0.5-1% lower | Slightly higher |
| Total interest paid | Much less (50-60% less) | Significantly more over 30 years |
| Equity building | Faster | Slower |
| Best for | Higher earners, near retirement | First-time buyers, lower income |
When to use each calculator
Mortgage Calculator (15-year)
Choose 15 years if you can comfortably afford the higher payment, want to pay less total interest, or are closer to retirement.
Use Mortgage Calculator (15-year)Mortgage Calculator (30-year)
Choose 30 years if you need a lower monthly payment, are a first-time buyer, or want to invest the payment difference elsewhere.
Use Mortgage Calculator (30-year)On $250,000 at 6%, you'd save about $160,000 in interest with 15 vs 30 years. Use our mortgage calculator to compare your numbers.
Yes, by making extra principal payments. But you won't get the lower rate that comes with a 15-year term.
15 years saves on interest. But investing the payment difference from a 30-year at returns above the mortgage rate could come out ahead.