15-year vs 30-year mortgage: which should you choose?
Same loan, two terms. The 15-year crushes total interest and builds equity fast; the 30-year keeps the monthly payment low and leaves room in your budget. The right answer depends on cash flow and discipline.
| 15-year | 30-year | |
|---|---|---|
| Monthly payment | Higher (~50% more) | Lower |
| Interest rate | Usually ~0.5–0.75% lower | Higher |
| Total interest | Far less | Far more (often 2–3×) |
| Equity build-up | Fast | Slow early on |
| Budget flexibility | Tighter | More breathing room |
The trade-off in one line
A 15-year loan trades a higher monthly payment for dramatically less interest and a paid-off home in half the time. A 30-year loan trades total cost for a lower, safer monthly payment. Run both in the Mortgage Calculator — the total-interest gap is usually six figures.
When the 30-year can still win
If the lower 30-year payment lets you reliably invest the difference (e.g. into an index fund returning more than your mortgage rate), or you value the cash-flow safety, the 30-year can be the smarter financial — and emotional — choice. The catch is discipline: the savings only materialize if you actually invest them.
The verdict
Choose the 15-year if the payment fits comfortably and you want to minimize interest and own your home sooner. Choose the 30-year for a lower, safer payment — ideally investing the difference. Model both, including extra payments, in the Mortgage Calculator.
Frequently asked questions
- Is a 15-year mortgage worth it?
- If the higher payment fits your budget, yes — you’ll pay far less total interest and own the home in half the time, often at a lower rate. If it strains cash flow, the flexibility of a 30-year may be safer.
- Can I just pay a 30-year like a 15-year?
- Largely, yes. Making extra principal payments on a 30-year shortens it without locking you into the higher required payment. You’ll pay a slightly higher rate than a true 15-year, but keep flexibility.
- Why is the 15-year rate lower?
- Lenders take on less risk over a shorter term, so they typically offer 15-year loans at a rate about 0.5–0.75% below the 30-year.
Settle it with your numbers
Free, in-browser calculators for everything above.