A 15-year mortgage saves you a fortune in interest and a lower rate, but the monthly payment is much higher. A 30-year mortgage keeps payments low and flexible, but you pay far more interest over time. On a $400,000 loan, the choice can swing your total interest by more than $300,000 — so it is worth getting right.
Open the Mortgage Calculator — try 15 vs 30 yr →
Quick verdict
Choose a 15-year mortgage if you can comfortably afford the higher payment and want to be debt-free sooner with minimal interest. Choose a 30-year mortgage if you value lower payments, cash-flow flexibility, or plan to invest the difference. Many buyers split the difference: take the 30-year for safety and make extra principal payments when they can.
15 vs 30 year mortgage at a glance
Example: a $400,000 loan at illustrative 2026 rates — 6.5% for the 30-year, 5.75% for the 15-year (15-year loans almost always carry a lower rate).
| Feature | 15-year | 30-year |
|---|---|---|
| Example interest rate | 5.75% | 6.50% |
| Monthly payment (P&I) | ~$3,320 | ~$2,530 |
| Total interest paid | ~$198,000 | ~$510,000 |
| Total of payments | ~$598,000 | ~$910,000 |
| Years to debt-free | 15 | 30 |
| Equity built faster | ✅ Yes | ❌ Slower |
| Payment flexibility | ❌ Locked high | ✅ Lower & flexible |
| Room to invest the difference | ❌ Less | ✅ ~$790/mo freed up |
Rates are illustrative as of 2026 and vary by lender, credit score and down payment. Run your own figures with the Mortgage Calculator.
The case for a 15-year mortgage
- Massive interest savings. In the example above, the 15-year loan costs about $198,000 in interest versus roughly $510,000 on the 30-year — a saving of more than $300,000.
- A lower interest rate. Lenders price 15-year loans below 30-year loans, so you compound the savings.
- You own your home sooner. Being mortgage-free in 15 years is a powerful base for retirement or other goals.
- Faster equity. More of every early payment goes to principal, building equity quickly.
The case for a 30-year mortgage
- Lower monthly payment. About $790 less per month in the example — easier to qualify for and easier to live with.
- Flexibility. You can voluntarily pay extra toward principal in good months, then fall back to the lower required payment when money is tight.
- Room to invest. If you reliably invest the monthly difference at a higher return than your mortgage rate, the 30-year can come out ahead financially.
- Buffer for emergencies. A lower required payment is a safety margin if income drops.
A worked example
On the $400,000 loan, the 15-year borrower pays roughly $3,320 a month and hands the bank about $198,000 in interest. The 30-year borrower pays about $2,530 a month but roughly $510,000 in interest over the full term. The 30-year frees up about $790 a month — invested consistently at a strong return, that gap can partly close, but only if you actually invest it rather than spend it.
Plug your real loan amount, rate and down payment into the Mortgage Calculator to see your exact payment and amortization schedule, or use the Loan Calculator to compare any two terms side by side.
Which should you choose?
- Pick 15-year if the higher payment still leaves you with a healthy emergency fund and room to invest for retirement.
- Pick 30-year if the 15-year payment would stretch your budget, you want flexibility, or you have higher-priority goals (paying off high-interest debt, maxing retirement accounts).
- Hybrid: take the 30-year and treat extra principal payments as optional. You get the low required payment and the option to pay it down faster.
Related calculators & guides
- Mortgage Calculator — payment, PMI, taxes, insurance & full amortization schedule.
- Loan Calculator — compare any loan amount, rate and term.
- Mortgage Points Explained — should you buy down your rate?
- What Is PMI? — and how to drop it.
- Rent vs Buy — the bigger housing decision.
Frequently asked questions
Is a 15 or 30 year mortgage better?
A 15-year mortgage is better if your goal is to pay the least interest and own your home sooner — it typically saves hundreds of thousands in interest and comes with a lower rate. A 30-year mortgage is better if you want lower, more flexible monthly payments and the freedom to invest the difference. It depends on your cash flow and goals.
How much more is a 15 year mortgage per month?
On a $400,000 loan, a 15-year mortgage runs roughly $790 a month more than a 30-year — about $3,320 versus $2,530 in our 2026 example. The exact gap depends on the rates you are offered.
Can I pay off a 30 year mortgage early instead?
Yes. A 30-year loan with extra principal payments gives you flexibility — pay it down like a 15-year loan in good months and drop back to the lower payment when needed. The trade-off is that 30-year rates are usually higher.
Why is the interest so much higher on a 30 year mortgage?
You borrow for twice as long and at a higher rate, so a 30-year mortgage can cost more than double the total interest of a 15-year mortgage on the same loan amount.