Blog
A 15-year mortgage has higher monthly payments but saves $150,000-$265,000 in total interest. A 30-year mortgage has lower payments but costs significantly more over the life of the loan. Here are the exact numbers for common loan amounts so you can make the right choice for your budget.
| 15-Year Mortgage | 30-Year Mortgage | Difference | |
|---|---|---|---|
| Interest rate (typical 2026) | 6.50% | 7.00% | 0.50% lower on 15-year |
| Monthly payment (P&I) | $2,613 | $1,996 | $617/month more on 15-year |
| Total payments over life | $470,340 | $718,527 | $248,187 more on 30-year |
| Total interest paid | $170,340 | $418,527 | $248,187 saved on 15-year |
| Mortgage-free in | 15 years | 30 years | 15 years sooner |
| Equity after 5 years | ~$134,000 | ~$30,000 | $104,000 more equity on 15-year |
| Monthly income needed (28% rule) | $9,332 | $7,129 | $2,203 more income needed |
| Loan Amount | 15yr Payment | 30yr Payment | Monthly Diff | 15yr Total Interest | 30yr Total Interest | Interest Saved |
|---|---|---|---|---|---|---|
| $200,000 | $1,742 | $1,331 | $411 | $113,560 | $279,018 | $165,458 |
| $250,000 | $2,177 | $1,663 | $514 | $141,950 | $348,772 | $206,822 |
| $300,000 | $2,613 | $1,996 | $617 | $170,340 | $418,527 | $248,187 |
| $350,000 | $3,049 | $2,329 | $720 | $198,730 | $488,282 | $289,552 |
| $400,000 | $3,484 | $2,661 | $823 | $227,120 | $558,036 | $330,916 |
| $500,000 | $4,355 | $3,327 | $1,028 | $283,900 | $697,546 | $413,646 |
Get a 30-year mortgage but pay as if it were a 15-year:
| Choose 15-Year If | Choose 30-Year If |
|---|---|
| Payment is under 25% of gross income | 15-year payment would exceed 28% of gross income |
| Already maxing 401k and IRA contributions | Need lower payments to fund retirement contributions |
| You value being debt-free over investment returns | You prefer investing the difference in the market |
| You have a stable income with low risk of reduction | Your income is variable (commission, freelance, startup) |
| You have 6+ months emergency fund already | You need to build emergency savings first |
| You do not plan to move in the next 10+ years | You might relocate within 5-7 years |
This comparison uses fixed interest rates and does not account for tax implications (mortgage interest deduction), opportunity cost of the extra payment (investing the $617/month difference at 8% returns could outperform the 15-year interest savings), inflation (future dollars are worth less than today's dollars), or lifestyle changes (job loss, career change, relocation). The "right" choice depends on your complete financial picture, risk tolerance, and personal value of being debt-free.
Run the numbers for both terms right now — see the exact monthly payments and interest.
Open Mortgage Calculator