15 vs 30 Year Mortgage
A 15-year mortgage builds equity faster and saves tens of thousands in interest — but requires a higher monthly payment. See the exact trade-off for your loan amount.
What you'll need
- Loan amount (home price minus down payment)
- 15-year interest rate quote
- 30-year interest rate quote
What you'll get
Side-by-side payments
15-yr vs 30-yr monthly cost
Total interest savings
How much you save in dollars
Total cost comparison
True cost of each option
Extra monthly cost
How much more the 15-yr costs
How it works
Enter loan amount
Input your expected loan balance — home price minus down payment.
Set interest rates
15-year rates are typically 0.5–0.75% lower than 30-year rates.
Compare side-by-side
See monthly payment difference, total interest paid, and break-even timeline.
15 vs 30 Year Comparison ($300,000 Loan)
| Metric | 15-Year (6.25%) | 30-Year (6.75%) |
|---|---|---|
| Monthly Payment | $2,572 | $1,945 |
| Total Interest | $162,966 | $400,157 |
| Total Paid | $462,966 | $700,157 |
| Monthly Savings | — | $627 less |
15-year saves $237,191 in interest but requires $627 more per month.
Frequently asked questions
How much more is a 15-year payment vs a 30-year?
A 15-year mortgage payment is typically 30–50% higher than a 30-year payment on the same loan amount. For a $300,000 loan, you might pay $2,600/mo on a 15-year vs $1,900/mo on a 30-year — but the 15-year saves over $100,000 in interest.
Is a 15-year mortgage always better?
Not always. A 15-year mortgage saves significant interest but requires a higher monthly payment. If the extra payment would strain your budget or prevent you from investing in higher-return assets, a 30-year mortgage may be the smarter choice.
Do 15-year mortgages have lower interest rates?
Yes. Lenders typically offer 15-year rates 0.5–0.75% lower than 30-year rates because the shorter term reduces lender risk. This rate difference compounds the interest savings significantly over time.
What if I take a 30-year mortgage and pay it like a 15-year?
This hybrid approach gives you flexibility — you pay extra when you can afford to, and scale back during tight months. The downside is a slightly higher rate than a true 15-year. If you have steady income and strong discipline, a 15-year locks in the savings. If your income varies, the 30-year with extra payments provides a safety net.
How much equity do I build faster with a 15-year mortgage?
Much faster. After 5 years on a $300,000 30-year mortgage at 7%, you've paid off about $19,000 in principal. On a 15-year at 6.5%, you've paid off roughly $48,000. The combination of a lower rate, higher payment, and faster amortization means 15-year borrowers build equity roughly 2.5x faster in the early years.
Ready to compare?
Compare 15 vs 30 Year →State guides
How this varies by state
Property taxes, insurance costs, first-time buyer programs, and closing costs differ significantly across states. See local data for your state.
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Ohio
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North Carolina
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Washington
Arizona
Colorado
Tennessee