The Big Picture

With a 15-year mortgage you pay off the home twice as fast and usually get a lower interest rate, but monthly payments are significantly higher. A 30-year spreads payments out to maximize cash flow, making it easier to qualify and budget—at the cost of much more total interest.

Quick Comparison

Feature	15-Year	30-Year
Rate (typical)	Lower	Higher
Monthly Payment	Higher	Lower
Total Interest	Much less	Much more
Payoff Speed	Fast	Slow
Cash-Flow Flexibility	Lower	Higher

Illustrative Example

Example only; run your exact numbers in our Mortgage Calculator (PITI).

Loan: $350,000
15-yr at 6.0% → Payment ≈ $2,958 (P&I), total interest ≈ $182k
30-yr at 6.5% → Payment ≈ $2,212 (P&I), total interest ≈ $447k

The 30-year saves ~$746/mo upfront but costs ~+$265k more interest over the life of the loan.

Who a 15-Year Fits Best

Stable, high predictable income and strong emergency savings.
Goal to be debt-free sooner or retire with a paid-off home.
Little to no higher-return debts competing for your dollars.

Who a 30-Year Fits Best

Need room in the budget for childcare, repairs, or other goals.
Qualifying is tight and you want a lower required payment.
Plan to invest the difference and expect higher returns than the mortgage rate.

Hybrid Strategy: Pay 30-Year Like a 20 or 15

Take the 30-year for flexibility, then make extra principal payments whenever possible. There’s no penalty on most loans. Even $100–$300 extra per month can shave years off and save tens of thousands in interest.

Other Costs Matter Too (PITI)

Your monthly housing cost includes PITI: Principal, Interest, Taxes, and Insurance (plus HOA, PMI if applicable). Property taxes and homeowners insurance can change annually; budget conservatively.

Refinancing Angle

From 30 → 15: If rates drop or income rises, refi to a 15-year to slash interest and accelerate payoff.
From 15 → 30: If cash is tight, refi to 30-year to lower the payment (you can still prepay later).

How to Decide (Fast Checklist)

Price out payment with our Mortgage Calculator at current rates.
Stress test your budget: can you handle a surprise expense and still make payments?
Compare after-tax investment return you realistically expect vs the mortgage rate.
Consider life goals: debt-free date vs maximum cash flow.

Key Terms

APR: Annual Percentage Rate including certain fees.
PMI: Private Mortgage Insurance for down payments < 20%.
Amortization: Schedule that shows principal vs interest each month.