Overview
15-Year Mortgage
A shorter-term mortgage with higher monthly payments but significantly less total interest paid over the life of the loan. You'll build equity faster and own your home in half the time.
Try Calculator →30-Year Mortgage
The most popular mortgage term with lower monthly payments, making homeownership more affordable. You'll pay more in total interest but have greater monthly cash flow flexibility.
Try Calculator →Feature Comparison
| Feature | 15-Year Mortgage | 30-Year Mortgage |
|---|---|---|
| Monthly Payment | Higher (typically 25-40% more) | Lower, more affordable |
| Interest Rate | Lower (typically 0.25%-0.75% less) | Higher |
| Total Interest Paid | Significantly less (often 50%+ savings) | Much more over the loan term |
| Equity Building | Faster equity accumulation | Slower equity buildup |
| Loan Term | 15 years to payoff | 30 years to payoff |
| Flexibility | Less monthly cash flow | More monthly budget flexibility |
| Qualification Difficulty | Harder to qualify (higher DTI) | Easier to qualify (lower DTI) |
15-Year Mortgage
Pros
- Pay off your home in half the time
- Significant interest savings (often $100,000+)
- Lower interest rates offered by lenders
- Build equity much faster
- Own your home free and clear sooner
- Lower total cost of homeownership
- Psychological benefit of being debt-free faster
Cons
- Higher monthly payments strain budget
- Less disposable income for other goals
- Harder to qualify due to DTI ratios
- Less flexibility for financial emergencies
- May limit how much home you can afford
- Less opportunity to invest extra cash elsewhere
30-Year Mortgage
Pros
- Lower, more manageable monthly payments
- Easier to qualify for larger loans
- More monthly cash flow flexibility
- Can always make extra payments when able
- More money available for investments
- Inflation helps erode real payment burden
- Standard, widely available option
Cons
- Pay significantly more total interest
- Higher interest rates than 15-year loans
- Slower equity building
- Debt lasts twice as long
- Higher total cost of homeownership
- Risk of being in debt during retirement
Which Should You Choose?
Choose 15-Year Mortgage if...
Choose a 15-year mortgage if you have a stable, high income, want to maximize interest savings, plan to stay in your home long-term, want to be mortgage-free sooner, or are approaching retirement and want to eliminate housing debt.
Choose 30-Year Mortgage if...
Choose a 30-year mortgage if you need lower monthly payments to qualify, want to maintain financial flexibility, prefer to invest extra money elsewhere, are a first-time buyer, live in an expensive housing market, or value having more monthly cash flow for other goals.