15 vs 30-Year Mortgage: Which Should You Choose?
Choosing your mortgage term is one of the biggest financial decisions you'll make, and it comes down to a trade-off between a lower monthly payment and far less total interest. Here's how to think about it.
The 30-year: lower payment, more interest
A 30-year mortgage spreads the loan over more payments, so each one is smaller and easier to fit into a budget. The cost is interest: because you're borrowing for twice as long, you can end up paying more in interest than the original loan amount over the life of the mortgage.
The 15-year: higher payment, big savings
A 15-year mortgage has a noticeably higher monthly payment, but it often carries a lower interest rate and dramatically cuts the total interest — frequently by more than half. You also build equity faster and own your home outright in half the time.
A flexible middle path
Some buyers take a 30-year loan for the lower required payment, then make extra payments when they can — getting much of the interest savings of a 15-year while keeping the flexibility to fall back to the smaller payment in a tight month. The right choice depends on whether you value lower-risk cash flow or maximum interest savings.
Compare them yourself
Put the same loan amount and rate into the mortgage calculator with a 30-year and then a 15-year term to see the difference in monthly payment and total interest. The numbers make the trade-off concrete.
Educational information only — not financial, tax, or investment advice.