15-Year vs 30-Year Mortgage: Payment & Interest Comparison
Compare 15-year vs 30-year mortgage payments, total interest, equity build, and flexibility — with a worked example on a $400,000 loan.
Compare 15 vs 30 years with your numbers15 vs 30 year mortgage: the core tradeoff
A 30-year mortgage spreads repayment over 360 months, producing a lower required monthly payment. A 15-year mortgage cuts the term in half — higher monthly P&I, but far less total interest and faster equity build.
Neither term is universally “better.” The right choice depends on cash flow, savings, how long you will keep the loan, and whether you would invest extra cash instead of paying down the mortgage faster.
Monthly payment comparison
Monthly payment is usually the first number buyers compare. On the same loan amount, a 15-year payment is substantially higher because you repay principal in half the time. Lenders also often quote slightly lower rates on 15-year loans — typically about 0.25 to 0.75 percentage points below comparable 30-year offers.
Lower 30-year payments can help you qualify under debt-to-income limits or preserve cash for emergencies, retirement contributions, or other goals. The 15-year path commits you to a higher fixed payment in exchange for long-term interest savings.
Total interest and total payments
Total interest is where the terms diverge most. A 30-year loan accrues interest for twice as many years on a slowly declining balance. A 15-year loan retires debt faster, so less interest accumulates — often hundreds of thousands of dollars less on a typical purchase price.
Total payments include all principal and interest over the life of the loan (excluding taxes, insurance, and PMI). When comparing offers, look at both monthly affordability and lifetime cost — not rate alone.
Worked example: $400,000 loan
Consider a $400,000 loan with 20% down already reflected in the loan amount (no PMI). Rates below are illustrative assumptions — not current market benchmarks — so you can compare structure without mixing in live rate data.
Compare 15 vs 30 years with your numbers in the mortgage calculator — enter your home price, down payment, and lender quotes for each term.
| 30-year fixed | 15-year fixed | |
|---|---|---|
| Illustrative rate | 6.5% | 6.0% |
| Principal & interest / month | ≈ $2,528 | ≈ $3,375 |
| Total interest (full term) | ≈ $510,000 | ≈ $208,000 |
| Total P&I payments | ≈ $910,000 | ≈ $608,000 |
| Required payment flexibility | Lower required payment | Higher required payment |
Equity, flexibility, and opportunity cost
Equity builds faster on a 15-year schedule because more of each payment goes to principal early on. A 30-year loan still builds equity, but more slowly at first — appreciation and extra payments can accelerate it.
Flexibility favors the 30-year: you can pay extra when cash allows without committing to the higher required payment. Opportunity cost matters too — if your mortgage rate is low and you have high-return alternatives (employer match, high-interest debt payoff), directing all spare cash to a 15-year term may not be optimal.
When each term fits
A 30-year loan often fits first-time buyers, high-cost markets, or anyone who needs maximum monthly affordability. A 15-year loan fits stable high earners focused on debt-free homeownership sooner and minimizing total interest.
Current benchmark rates for both terms are published weekly on our mortgage rates page. Use those as context, then run your lender quotes through the calculator for an apples-to-apples comparison.
Ready to run the numbers for your situation?
Compare 15 vs 30 years with your numbersCommon questions
- Is a 15-year mortgage always better?
- No. A 15-year loan reduces total interest and builds equity faster, but the required monthly payment is higher. A 30-year loan preserves cash flow and flexibility — you can still prepay when you choose. The better fit depends on budget, savings, and goals.
- Why are 15-year mortgage rates often lower?
- Lenders often price 15-year fixed loans below 30-year fixed loans because the shorter term is lower risk. The gap varies by market and borrower profile — compare both quotes side by side rather than assuming a fixed spread.
- Can I take a 30-year mortgage and pay it like a 15-year?
- Yes. Many borrowers choose a 30-year loan for payment flexibility and make extra principal payments when cash allows. You are not locked into the minimum payment — but discipline matters, and a 15-year loan enforces the faster schedule automatically.
- How much more interest can a 30-year mortgage cost?
- On a $400,000 loan with illustrative rates of 6.5% (30-year) and 6.0% (15-year), total interest is about $510,000 vs $208,000 — roughly $302,000 more on the 30-year. Your numbers depend on loan amount, rates, and any extra payments.
- Which loan provides more flexibility?
- A 30-year loan typically provides more flexibility because the required payment is lower. You can invest the difference, build emergency savings, or prepay when you choose. A 15-year loan trades that flexibility for a faster payoff and less total interest.