15-Year vs 30-Year Mortgage: Which Is Better for You?

One of the biggest decisions when you buy a home is choosing between a 15-year and 30-year mortgage. Both options can be smart, but they affect your monthly payment, total interest, and long-term flexibility in very different ways.

You can quickly compare both options using the Mortgage Calculator on our homepage. Just adjust the loan term and interest rate to see how your monthly payment and total cost change.

Key Differences Between 15- and 30-Year Mortgages

• 15-year mortgage: Higher monthly payment, lower total interest.
• 30-year mortgage: Lower monthly payment, higher total interest.
• Interest rate: 15-year loans usually have a lower interest rate than 30-year loans.
• Equity: You build equity faster with a 15-year mortgage.

Simple Payment Example

Let’s say you’re borrowing $350,000. Here’s how the two terms might compare:

When a 15-Year Mortgage Makes Sense

A 15-year mortgage can be a great choice if:

• You want to be debt-free sooner.
• You can comfortably afford a higher monthly payment.
• You want to minimize the amount of interest you pay over time.
• You value building equity quickly.

The trade-off is less monthly flexibility. Your payment is higher, so you have less room in your budget for investing, saving for other goals, or handling unexpected expenses.

When a 30-Year Mortgage Makes Sense

A 30-year mortgage might be better if:

• You prefer a lower, more manageable monthly payment.
• You want extra cash flow to invest, save, or pay other debts.
• You’re buying at the edge of what you qualify for (but be careful here).
• You want more flexibility in your monthly budget.

The downside is that you will pay significantly more in total interest over the life of the loan.

A Flexible Strategy: 30-Year Loan, 15-Year Payments

One popular strategy is to take out a 30-year mortgage for the flexibility, but pay it like a 15-year loan when you can. That means making extra principal payments each month or whenever you have extra cash.

You get:

• The safety of a lower required payment.
• The option to pay faster and save interest.

You can test this by running different scenarios in the Mortgage Calculator and, if you have extra principal payments in mind, using your Loan Payoff Calculator as well.

So Which Mortgage Term Is Right for You?

There’s no one-size-fits-all answer. The best option depends on your income stability, risk tolerance, other financial goals, and how much flexibility you want each month.

A good starting point is to:

• Use the Mortgage Calculator to compare 15- vs 30-year payments.
• Check how each payment fits into your budget.
• Think about your other goals (retirement, savings, debt payoff).

The more you model different scenarios, the clearer your decision becomes. That’s exactly what our calculators are here to help you do.