What is the main difference?

A 15-year loan has higher monthly payments but pays off faster and costs less in total interest. A 30-year loan has lower monthly payments but more total interest over time.

Which has lower monthly payment?

The 30-year has a lower monthly payment because you spread the loan over twice as long. The 15-year payment is roughly 25%–35% higher for the same loan amount.

Which saves more interest?

The 15-year saves significant interest because you pay off the loan faster. You also build equity quicker.

When does a 15-year make sense?

A 15-year can make sense if you can afford the higher payment and want to pay off the loan sooner. A 30-year offers flexibility and lower payments if cash flow is a concern.

15 vs 30 Year Mortgage

Disclaimer: This website provides general mortgage and financial information for educational purposes only. It does not constitute financial, legal, or mortgage advice. Housentia is not a licensed mortgage broker, lender, or loan originator.

This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.

Introduction

15 vs 30 year is a common choice. The 15-year has higher monthly payments but pays off faster and costs less in total interest. The 30-year has lower payments and more flexibility. See What Is a Loan Term, What Is Amortization, and What Is a Fixed Rate Mortgage.

Frequently Asked Questions

What is the main difference?: A 15-year loan has higher monthly payments but pays off faster and costs less in total interest. A 30-year loan has lower monthly payments but more total interest over time.
Which has lower monthly payment?: The 30-year has a lower monthly payment because you spread the loan over twice as long. The 15-year payment is roughly 25%–35% higher for the same loan amount.
Which saves more interest?: The 15-year saves significant interest because you pay off the loan faster. You also build equity quicker.
When does a 15-year make sense?: A 15-year can make sense if you can afford the higher payment and want to pay off the loan sooner. A 30-year offers flexibility and lower payments if cash flow is a concern.

Educational Disclaimer

This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.

Housentia is not a lender, mortgage broker, or loan originator.

Use a mortgage calculator to compare scenarios.