15 vs. 30
Year Fixed Mortgage
A 15-year mortgage has higher monthly payments but saves significantly on total interest. A 30-year mortgage has lower monthly payments but costs substantially more over the life of the loan.
The right choice depends on your income, monthly budget, and financial priorities. Below is everything you need to compare them.
Compare Loan Terms in the Calculator →| Feature | 15-Year Mortgage | 30-Year Mortgage |
|---|---|---|
| Monthly payment | Higher (~40–50% more) | Lower |
| Interest rate | Typically 0.25–0.75% lower | Slightly higher |
| Total interest paid | Significantly less | Roughly 2× more |
| Equity buildup | Faster | Slower |
| Monthly flexibility | Less room in budget | More cash flow |
| Qualification | Harder (higher payment) | Easier to qualify |
| Best for | Minimizing total cost | Maximizing flexibility |
Here's how a $300,000 loan breaks down at typical rates for each term. The 15-year uses 6.0% (rates are usually lower for shorter terms) and the 30-year uses 6.5%.
| Metric | 15-Year @ 6.0% | 30-Year @ 6.5% |
|---|---|---|
| Monthly P&I | $2,532 | $1,896 |
| Total payments | $455,760 | $682,560 |
| Total interest | $155,760 | $382,560 |
| Interest saved | $226,800 less with a 15-year term | |
The 15-year mortgage costs $636 more per month but saves over $226,000 in interest over the life of the loan. That's the core tradeoff.
| Loan Amount | 15yr Payment (6.0%) | 30yr Payment (6.5%) | Interest Saved |
|---|---|---|---|
| $150,000 | $1,266 | $948 | $113,400 |
| $200,000 | $1,688 | $1,264 | $151,200 |
| $300,000 | $2,532 | $1,896 | $226,800 |
| $400,000 | $3,375 | $2,528 | $302,400 |
| $500,000 | $4,219 | $3,161 | $378,000 |
The examples above use standard rates, but your rate, loan amount, and down payment will differ. Use the Mortgage Calculator to run your own 15-year vs. 30-year comparison with exact numbers.
Adjust the term, rate, and loan amount to see how each scenario affects your monthly payment and total interest.
Open Mortgage Calculator →Each page below includes a 15-year vs. 30-year comparison table for that specific home price, along with rate and down payment breakdowns.
Browse all 37 price points from $100K to $1M on the Mortgage & Real Estate hub.
It depends on your priorities. A 15-year mortgage is better for minimizing total cost — you'll save tens of thousands to hundreds of thousands in interest. A 30-year mortgage is better for monthly flexibility — the lower payment leaves more room for saving, investing, or handling unexpected expenses.
Neither is universally "better." The right choice depends on your income, debt, and how you'd use the monthly savings.
On a $300,000 loan, the interest savings are roughly $225,000–$230,000 compared to a 30-year term (assuming 6.0% for 15yr and 6.5% for 30yr). The savings scale proportionally with loan size — a $500K loan saves ~$378,000.
The savings come from two factors: a shorter repayment period and a lower interest rate (15-year rates are typically 0.25–0.75% lower).
Yes. Most conventional mortgages have no prepayment penalty. You can make extra principal payments anytime — monthly, annually, or as lump sums. Adding just $200/month to a 30-year $300K mortgage at 6.5% cuts the payoff time by ~7 years and saves ~$115,000 in interest.
This is a popular middle-ground strategy: take the 30-year for its lower required payment, then pay extra when your budget allows.
Most first-time buyers choose a 30-year mortgage. The lower monthly payment makes it easier to qualify, leaves more budget for move-in costs and home repairs, and provides a safety net if income changes. You can always make extra payments toward principal when finances allow.
A 15-year term works for first-time buyers with high income, low debt, and a solid emergency fund. Use the affordability calculator to see how each term affects what you can qualify for.
Yes. 15-year fixed rates are typically 0.25%–0.75% lower than 30-year rates. Lenders charge less because shorter loans carry less risk. This rate advantage compounds the savings — you're paying a lower rate on a loan that's repaid in half the time.