15-Year vs. 30-Year Mortgage: Which Loan Term Is Right for You?
Choosing between a 15-year and a 30-year mortgage is one of the most important decisions you’ll make when buying or refinancing a home. While both options allow you to finance a property, they affect your monthly payment, total interest costs, and long-term financial flexibility in very different ways.
This guide walks through the differences step by step, helping you decide which mortgage term aligns best with your income, goals, and risk tolerance.
What Is a Mortgage Term?
A mortgage term is the length of time you have to repay your home loan in full. Common mortgage terms include 30 years, 20 years, and 15 years. The term you choose determines how your loan is amortized, meaning how payments are split between principal and interest over time.
Longer terms reduce your monthly payment by spreading repayment over more years, while shorter terms increase monthly payments but reduce the total interest you’ll pay.
How a 30-Year Mortgage Works
A 30-year mortgage is the most common home loan option in the United States. It offers the lowest monthly payment because the balance is repaid over a longer period.
- Lower monthly payments improve cash flow
- Slower equity growth in early years
- Higher total interest paid over time
This option is often preferred by first-time buyers, households with tighter budgets, or borrowers who want flexibility.
How a 15-Year Mortgage Works
A 15-year mortgage compresses the repayment schedule, resulting in higher monthly payments but dramatically lower interest costs.
- Higher monthly payments
- Faster equity accumulation
- Much lower total interest paid
Borrowers with stable income or those refinancing later in life often choose this option to become debt-free sooner.
Monthly Payment Differences
The biggest difference borrowers notice is the monthly payment. A 15-year mortgage payment can be 40–60% higher than a 30-year payment for the same loan amount.
You can compare real scenarios using the 15-year mortgage calculator and 30-year mortgage calculator.
Total Interest Paid Over Time
Although 30-year loans offer lower monthly payments, they typically cost significantly more in total interest. A 15-year loan can save tens or even hundreds of thousands of dollars over the life of the mortgage.
Reviewing an amortization schedule helps visualize this difference. You can explore this using the mortgage amortization calculator.
Equity Growth and Loan Payoff Speed
With a 15-year mortgage, a larger portion of each payment goes toward principal early in the loan. This accelerates equity growth and reduces risk if home values decline.
Faster equity growth also improves refinancing options and financial security.
Using Extra Payments as a Flexible Strategy
Many homeowners choose a 30-year mortgage and make extra payments when possible. This approach provides flexibility during tight months while still reducing interest.
Try modeling this strategy with the extra mortgage payments calculator.
Which Mortgage Term Is Best for You?
- Choose 30 years for affordability and flexibility
- Choose 15 years to minimize interest and build equity faster
- Consider income stability, goals, and risk tolerance
Compare Your Mortgage Options
Use our calculators to compare payments, interest costs, and payoff timelines - then explore other loan options in our mortgage resources.