15-Year vs 30-Year Mortgage
Compare 15-year and 30-year mortgage payments, total interest paid, and long-term cost. Free side-by-side calculator.
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What is 15-Year vs 30-Year Mortgage?
The 15-year vs 30-year mortgage decision affects your monthly cash flow, total interest paid, and wealth-building timeline. A 15-year mortgage has higher monthly payments but dramatically lower total interest (often 50-60% less). A 30-year mortgage offers lower required payments and more flexibility. This calculator shows the exact payment difference, total interest comparison, and break-even analysis for your specific loan amount and rates.
Which is Better for You?
The right choice depends on your specific situation. Here are the most common decision scenarios:
You can comfortably afford the higher 15-year payment
You'll pay 50-60% less total interest and own your home outright in half the time. The rate is typically 0.5-0.75% lower too.
The 15-year payment would strain your budget
Cash flow flexibility matters. A 30-year mortgage with extra payments when possible gives you the safety net of lower required payments.
You want to maximize investment returns
If mortgage rates are below your expected investment returns (~10% S&P 500 average), taking the 30-year and investing the payment difference can build more wealth long-term.
You're within 15 years of retirement
Entering retirement mortgage-free significantly reduces your required income. Paying off your home before retirement is one of the strongest financial moves you can make.
Related Comparisons
For authoritative guidance, see CFPB — Mortgage Types Explained.
Key Considerations
- A 15-year mortgage typically carries a 0.5-0.75% lower interest rate than a 30-year. On a $300,000 loan, this rate difference plus the shorter term saves over $150,000 in total interest - but your monthly payment is roughly 40% higher.
- The hidden advantage of a 30-year mortgage: you can always pay extra toward principal voluntarily, effectively creating a flexible 15-year schedule. But a 15-year mortgage locks you into the higher payment with no option to reduce it during tight months.
- If your employer offers a 401(k) match, maxing that out before choosing a 15-year mortgage usually produces better returns. A 100% employer match is an instant 100% return - no mortgage payoff can compete with that.
Frequently Asked Questions
How much more interest does a 30-year mortgage cost?
On a $320,000 loan at 6.5% (30-year) vs 5.75% (15-year): the 30-year costs ~$408,000 in total interest, while the 15-year costs ~$154,000. That's $254,000 more — nearly the original loan amount — paid in interest alone over the extra 15 years.
Can I pay off a 30-year mortgage in 15 years?
Yes. Making extra principal payments on a 30-year mortgage can pay it off early. The advantage: you're not locked into the higher 15-year payment if finances get tight. The downside: your rate is higher than a true 15-year rate, so you pay slightly more interest even with extra payments.
Are 15-year mortgage rates always lower?
Almost always. Lenders offer lower rates on 15-year mortgages because there's less risk (shorter repayment period). The difference is typically 0.5-0.75 percentage points. As of early 2026, 15-year rates average around 5.75% while 30-year rates are around 6.5%.
What is the monthly payment difference?
On a $320,000 loan: 15-year at 5.75% = ~$2,656/month. 30-year at 6.5% = ~$2,023/month. The 15-year payment is $633 higher per month, but the total amount paid over the life of the loan is $254,000 less.
Comparison data is provided for informational purposes only. Rates, fees, and product details change frequently — verify current terms directly with each provider before making any financial decision. The Simple Toolbox has no commercial relationship with any listed product or service.
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