30-Year vs 15-Year Mortgage
The choice between a 30-year and 15-year mortgage is one of the biggest financial decisions in homeownership. Here's the complete side-by-side breakdown at common home prices.
30-Year Mortgage
At 7% APR
- ✓ Lower monthly payment
- ✓ More cash flow flexibility
- ✓ Easier to qualify for
- ✗ Pays ~2× more in total interest
- ✗ Slower equity growth
- ✗ Higher interest rate
$300K loan example
$1,596.73/mo
Total interest: $334,821
15-Year Mortgage
At 6.5% APR
- ✗ Higher monthly payment
- ✗ Less cash flow flexibility
- ✗ Harder to qualify for
- ✓ Saves ~$198,503 in interest
- ✓ Builds equity 2× faster
- ✓ Lower interest rate
$300K loan example
$2,090.66/mo
Total interest: $136,318
Full Payment Comparison by Home Price
Assumes 20% down payment. 30-yr at 7% APR, 15-yr at 6.5% APR.
| Home Price | 30-yr/mo | 15-yr/mo | Extra/mo | Interest Saved |
|---|---|---|---|---|
| $200,000 | $1,064.48 | $1,393.77 | +$329.29 | $132,335 |
| $300,000 | $1,596.73 | $2,090.66 | +$493.93 | $198,503 |
| $400,000 | $2,128.97 | $2,787.54 | +$658.58 | $264,671 |
| $500,000 | $2,661.21 | $3,484.43 | +$823.22 | $330,838 |
| $600,000 | $3,193.45 | $4,181.32 | +$987.86 | $397,006 |
Frequently Asked Questions
Is a 15-year mortgage worth it?
Yes — for most homeowners who can afford the higher payment. A 15-year mortgage on a $300,000 loan at typical rates saves roughly $130,000–$160,000 in interest vs. a 30-year. You also build equity twice as fast. The key question: can you comfortably afford the higher monthly payment?
How much higher is a 15-year mortgage payment vs 30-year?
On a $300,000 loan, a 15-year at 6.5% costs roughly $2,090.66/month vs. $1,596.73/month for a 30-year at 7%. That's about $494 more per month — but you pay off the home in half the time and save $198,503 in total interest.
What are the interest rate differences between 15 and 30-year mortgages?
15-year mortgages typically carry rates 0.5–0.75% lower than 30-year mortgages because lenders face less long-term risk. On a $400,000 loan, even a 0.5% rate difference saves tens of thousands in interest over the loan term in addition to the shorter payoff period.
Should I get a 30-year mortgage and pay extra?
It's a valid strategy — get the flexibility of a 30-year payment but pay it like a 15-year when possible. The downside: 30-year rates are higher, so you pay more interest on any month you don't make the extra payment. True 15-year mortgage holders pay less interest from day one.
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Mortgage Calculator Refinance Calculator Affordability Calculator