30-Year vs 15-Year Mortgage Calculator
Compare 30-year and 15-year mortgage loans side by side. See monthly payment, total interest, and total cost to decide which is right for you.
30-Year vs 15-Year Mortgage: Which Is Better?
Choosing between a 30-year and 15-year mortgage is one of the biggest financial decisions you'll make. The trade-off is simple: lower monthly payments (30-year) vs massive interest savings (15-year).
Key Differences
| Feature | 30-Year Fixed | 15-Year Fixed |
|---|---|---|
| Monthly Payment | Lower | ~40-50% higher |
| Interest Rate | Higher (7.0% avg) | Lower (6.2% avg) |
| Total Interest Paid | Much more | Much less |
| Equity Buildup | Slow | Fast |
| Flexibility | High (can pay extra) | Low (locked in) |
| Tax Deduction | More interest to deduct | Less interest to deduct |
The Hybrid Strategy: 30-Year + Extra Payments
One popular approach: take a 30-year mortgage but make extra payments as if it were a 15-year. You get the flexibility of lower required payments (helpful if income drops) while still saving on interest. The downside: your rate is higher than a true 15-year, so you'll pay slightly more interest than going with the 15-year directly.
When to Choose 30-Year
- You're early in your career with growing income potential
- You want to invest the difference in the stock market (historical ~8% returns vs ~7% mortgage rate)
- You need lower payments to qualify for the loan
- You plan to move within 7-10 years
- You want the option to rent out the home later
When to Choose 15-Year
- You're established in your career with stable income
- You want to be debt-free before retirement
- You're buying your "forever home"
- You're close to retirement age
- You prioritize guaranteed savings over market returns
Real Example: $300,000 Loan
At 7.0% for 30 years: monthly payment $1,996, total interest $418,560, total cost $718,560.
At 6.2% for 15 years: monthly payment $2,560, total interest $160,800, total cost $460,800.
Interest saved: $257,760 — but monthly payment is $564 higher.
Related Calculators
- Mortgage Calculator — Full PITI payment with taxes and insurance
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- Amortization Calculator — See full payment schedule
- Extra Payment Calculator — How extra payments shorten your loan