Question 1

Is a 15-year or 30-year mortgage better?

Accepted Answer

It depends on your financial goals. A 15-year mortgage saves tens to hundreds of thousands in interest and builds equity faster — but the higher monthly payment (typically 50–60% more) leaves less cash flow for other investments or expenses. A 30-year mortgage provides flexibility: you get a lower required payment and can still pay extra when you have the cash. Neither is universally better — the right choice depends on your income stability, other debts, and how you'd deploy the payment difference.

Question 2

How much lower are 15-year mortgage rates?

Accepted Answer

15-year mortgage rates are typically 0.5–0.75% lower than 30-year rates. This is because shorter-term loans pose less risk to lenders. This rate difference, combined with the shorter term itself, dramatically reduces total interest paid — even though the monthly payment is higher.

Question 3

What happens if I take a 30-year mortgage but pay it like a 15?

Accepted Answer

If you make 15-year equivalent payments on a 30-year loan, you'll pay it off in roughly 15 years and pay nearly the same total interest as a 15-year loan — but you retain the flexibility of the lower required payment when times are tough. The trade-off is a slightly higher rate on the 30-year loan, which costs modestly more in interest versus an actual 15-year loan.

Question 4

How much total interest do I save with a 15-year mortgage?

Accepted Answer

The savings depend on your loan amount and rate. On a $400,000 loan at typical rates, a 15-year mortgage saves roughly $150,000–$200,000 in total interest compared to a 30-year loan. Use the calculator above to see the exact difference for your situation.

Question 5

Can I switch from a 30-year to a 15-year mortgage?

Accepted Answer

Yes — you can refinance from a 30-year into a 15-year mortgage at any time. This makes sense when rates are favorable and your income has grown enough to handle the higher payment. Use the Refinance Calculator to see if the math works for your current loan. Closing costs typically run 2–3% of the loan amount.

15 vs 30-Year
Mortgage Calculator

Frequently Asked Questions

15 vs 30-YearMortgage Calculator

Frequently Asked Questions

15 vs 30-Year
Mortgage Calculator