Key Differences Between 15 and 30-Year Mortgages
- Monthly payment: 15-year is higher; 30-year is lower.
- Total interest: 15-year saves substantially; 30-year costs more over time.
- Rates: 15-year loans often have lower interest rates than 30-year loans.
- Flexibility: 30-year offers more cash-flow room; 15-year accelerates equity build.
When a 15-Year Mortgage Is Right for You
Consider a 15-year term if you have stable income, want to minimize lifetime interest, and can comfortably afford the higher monthly payment without compromising other goals.
When a 30-Year Mortgage Is a Better Choice
A 30-year term can be better for maximizing monthly affordability, maintaining emergency savings, or prioritizing investing and other financial goals alongside homeownership.
How the Calculator Works
Enter one set of property details (price, down payment, taxes, insurance, HOA). Provide separate interest rates for the 15-year and 30-year terms. The tool calculates monthly P&I, “all-in†payment (adding taxes/insurance/HOA), total interest, total cost, and a full amortization schedule for both scenarios.
Pros and Cons: 15-Year vs. 30-Year
15-Year
- Lower total interest
- Faster equity growth & payoff
- Higher monthly payment
30-Year
- Lower monthly payment
- More cash-flow flexibility
- Higher lifetime interest
Frequently Asked Questions
Is a 15-year mortgage always better?
It’s better for interest savings if you can comfortably afford the payment. Otherwise, a 30-year may be wiser.
What if I want the 15-year savings but the 30-year payment?
Consider a 30-year loan and make extra principal payments when possible. You’ll preserve flexibility and still cut interest.
Can I refinance from 30-year to 15-year later?
Yes, if rates/fees and your budget make sense. This can reduce total interest and shorten payoff time.