15-year vs 30-year mortgage
Two loans for the same house. One has a smaller monthly payment but quietly costs hundreds of thousands more. The other stings every month but ends years sooner. Which one is right for you? Let's run your actual numbers.
The cheaper monthly payment isn't always the cheaper loan. Run both numbers before you sign.
Start with the house
Pick the price of the home you're thinking about, and how much cash you'd put down up front. Everything else flows from those two numbers.
We're using current US average fixed rates. Shorter loans are slightly cheaper because the bank gets its money back faster — less risk, lower rate.
The monthly payment
The first thing most people look at is "what does this cost me every month?" The 30-year loan stretches your payments over twice as long, so each one is much smaller. That's its main appeal — it's the easier monthly bite.
The 15-year payment is $689 more per month than the 30-year. That's real money out of your budget every single month, for fifteen years.
The hidden cost: total interest
Here's where the story flips. That smaller 30-year payment? You make it for twice as long, and at a slightly higher rate. The interest piles up year after year. By the end, you've paid the bank a small fortune just for the privilege of borrowing.
On a $360,000 loan, choosing the 15-year saves you $300,645 in interest over the life of the loan. That's a paid-off house, and a pile of cash you never sent to the bank.
How fast you actually own it
Another way to see the difference: how quickly you actually build equity. The 15-year loan crushes your balance fast. The 30-year loan moves slowly for years before it picks up speed.
Notice the 30-year curve barely budges in the first few years — almost every dollar is going to interest, not principal. The 15-year line dives down because more of every payment is killing the loan itself.
So which one should you pick?
There's no single right answer. The 15-year saves you a fortune in interest and gets you to "owned outright" in half the time. The 30-year keeps your monthly cost low, leaves room in your budget for emergencies and investing, and gives you flexibility if life changes.
- You want the lowest possible monthly payment.
- Your income varies or feels uncertain.
- You'd rather invest the difference (and actually will).
- You expect to move or refinance within 5–10 years.
- You can comfortably afford the higher payment.
- You hate the idea of paying interest for 30 years.
- You want to be debt-free before retirement.
- You value certainty and a faster path to full equity.
Take the 30-year for the safety net of a low required payment — but pay it like a 15-year whenever you can. Most lenders let you make extra principal payments with no penalty. You get the flexibility of the 30, and most of the interest savings of the 15.
Your numbers, side by side
| 30-year | 15-year | |
|---|---|---|
| Monthly payment | $2,359 | $3,048 |
| Total interest paid | $489,216 | $188,571 |
| Total paid (loan + interest) | $849,216 | $548,571 |
| Years to "paid off" | 30 | 15 |
See today's actual rates
The numbers above use national average benchmarks. Ready to see what real lenders are quoting right now? Browse current offers and compare APRs side-by-side.