15 vs 30 Year Mortgage Comparison
See how different loan terms affect your payments and total cost.
$
$
20% of home price
%
%
15-year rates are typically 0.5-1% lower
Monthly Costs (Optional)
$
$
30 Year
Monthly P&I
$2,076
Total PITI
$2,559
Total Interest
$427,441
Total Cost
$747,441
VS
15 Year
Monthly P&I
$2,699
Total PITI
$3,182
Total Interest
$165,838
Total Cost
$485,838
The Difference
Monthly Payment Difference
$623 more/month
Interest Savings (15-yr)
$261,603
Pay Off
15 years sooner
What If You Invest the Difference?
If you take the 30-year loan and invest the monthly savings:
Monthly Investment
$623
At 7% return over 15 years
$197,654
After 15 years with the 30-year loan, you'd still owe $198,456 but have investments worth $197,654.
Payment Breakdown Over Time
Which Term is Right for You?
30-Year Mortgage
Advantages
- Lower monthly payments
- More budget flexibility
- Can invest the difference
- Easier to qualify for
- Can always pay extra when able
Disadvantages
- Higher interest rate
- Much more total interest paid
- Build equity slower
- Debt for 30 years
Best For: Buyers who want flexibility, plan to invest, have other financial goals, or need the lower payment to qualify.
15-Year Mortgage
Advantages
- Lower interest rate
- Massive interest savings
- Build equity much faster
- Own your home outright sooner
- Forced savings discipline
Disadvantages
- Higher monthly payments
- Less financial flexibility
- Harder to qualify for
- May limit home buying budget
Best For: Buyers with stable, higher incomes who prioritize being debt-free and can comfortably afford the higher payment.
Hybrid Strategy
Consider taking a 30-year mortgage but making payments as if it were a 15-year. This gives you flexibility during tight months while still paying off early when possible. Just ensure your lender applies extra payments to principal.