15-Year vs 30-Year Mortgage
The 30-year mortgage is America's default — but defaults are not always best. Here is the real math on both terms, so you can decide with your eyes open.
| On a $300,000 loan* | 30-Year at 6.6% | 15-Year at 5.9% |
|---|---|---|
| Monthly payment (P&I) | $1,915.98 | $2,515.39 |
| Extra per month | — | $599.41 |
| Total of all payments | $689,751.52 | $452,770.44 |
| Total interest paid | $389,751.52 | $152,770.44 |
| Interest saved | — | $236,981.09 |
| Years to mortgage-free | 30 | 15 |
What the table does not show
15-year rates are lower
Lenders charge less for shorter loans because they carry less risk. The rate gap is typically half a percent or more — and it compounds in your favor for the entire life of the loan.
Equity builds much faster
In the early years of a 30-year loan, most of your payment is interest. On a 15-year, you attack the principal from month one — real ownership, sooner.
Fifteen years of freedom
Everything you were sending the bank becomes yours again at year 15 — right when college, retirement, and life's big goals need it most.
Is the higher payment worth it?
The honest answer: it depends on your budget — and that is exactly why we built a calculator instead of a sales pitch.
A 15-year fits when…
The payment leaves room for your emergency fund, retirement savings, and real life. If the math works, it is the cheapest home you will ever buy.
A 30-year fits when…
Flexibility matters more than speed — a growing family, variable income, or a tight budget. You can always pay extra principal when you are able.
The hybrid move
Some families take a 30-year for safety and pay it like a 15-year. It costs a slightly higher rate, but keeps the option to fall back to the lower payment.
*Illustrative example, principal and interest only, comparing a 30-year fixed at 6.6% APR with a 15-year fixed at 5.9% APR. Actual rates vary by credit profile, lender, and market conditions. Not a loan offer or financial advice.