Quick Answer
A 15-year mortgage typically carries a rate about 0.5%–0.75% lower than a 30-year loan and cuts total interest by more than half — but the monthly payment is 40%–50% higher. Neither is objectively “better”; it depends on cash flow discipline and opportunity cost.
Want to see your own numbers side by side? Run both terms through our Mortgage Calculator and compare total interest before you decide.
Model both scenarios in our Mortgage Calculator by switching the loan term.
Side-by-Side: $300,000 Loan at 2026 Rates
Assumes 30-year at 6.5% vs 15-year at 5.875%.
| Metric | 30-Year | 15-Year |
| Monthly P&I | $1,896 | $2,512 |
| Total interest | $382,633 | $152,136 |
| term comparison | $230,497 |
The 15-year loan costs $616 more per month but saves over $230,000 in interest — often more than the original loan itself cost to borrow.
Choose 30 Years If…
• Your income is variable (commission, self-employment) and a high fixed payment is risky.
• You’re maxing out retirement accounts instead — 401(k)/IRA returns historically beat mortgage rates.
• You have other higher-interest debt (credit cards, personal loans) to kill first.
• You’d use the monthly savings to invest consistently — if you actually will.
Choose 15 Years If…
• You value being debt-free over maximizing invested assets.
• You’re refinancing from a 30-year loan late in its life (keeps your payoff date on track).
• Your income comfortably covers the payment at 2× coverage.
The Hybrid Strategy Most People Miss
Take the 30-year loan for flexibility, then pay it like a 15-year by adding extra to principal each month. You get the 15-year’s interest math with the 30-year’s safety valve: in a bad month, you simply pay the minimum. There’s no penalty for overpaying principal on most conventional loans — confirm with your lender first.
FAQ
Is a 15-year payment always higher?
Yes — roughly 40–50% higher, because you compress repayment into half the time even though the rate is lower.
Can I refinance from 30 to 15 years later?
Yes, and many do after income grows. Check the break-even math in our Refinance Calculator — closing costs typically run 2–5% of the loan.
What about 20-year loans?
They exist and split the difference nicely, but carry fewer rate discounts. Compare all three terms when getting quotes.
This article is for educational purposes only and is not financial advice. See our full disclaimer.
Related Reading
- When to Refinance Your Mortgage — the break-even rule that decides whether a refi pays off.
- How Much House Can I Afford? — how lenders set your maximum, and why you shouldn’t spend it.