15 vs 30 Year Mortgage Comparison

See how term length changes payment, total interest, and flexibility.

Key differences

• 15-year: Lower rate, much less interest, higher monthly payment.
• 30-year: Higher rate, more total interest, lower monthly payment and more flexibility.

Example

$400,000 loan. 30-year at 6.5% → $2,528 P&I, about $510k interest over life. 15-year at 5.75% → $3,330 P&I, about $199k interest. Savings ≈ $311k but +$802/month.

Who chooses which

Pick a 15-year if income is stable and you want faster equity. Pick a 30-year if you need payment room, expect variable income, or plan to invest the difference.

Hybrid approach

Take a 30-year for flexibility, make 15-year sized payments when you can, and recast if your lender allows.

FAQ

• Is the rate always lower on a 15-year? Almost always; lenders price shorter terms lower.
• Can I refinance from 30 to 15 later? Yes, but consider closing costs and break-even.
• What about ARMs? See the Fixed vs ARM guide for short-term options.

Compare live in side-by-side view or run a single case in the mortgage calculator.