15-Year Mortgage FAQ

Two reasons: lower rates and dramatically less interest. 15-year loans typically price about half a percent below 30-year loans, and you pay interest for half as long. On a $300,000 loan at typical rates, that combination can save you well over $200,000 — and you own your home outright in half the time.

On a $300,000 loan at typical rates, the 15-year payment runs about $600 more per month than a 30-year ($2,515 vs $1,916, principal and interest). Use our free calculator to see the exact numbers for your loan amount and rates.

Yes — refinancing from a 30-year into a 15-year is one of the most common ways people accelerate their payoff, especially once their income has grown. You will need to qualify for the higher payment, and closing costs apply, but the long-term interest savings are often substantial.

Paying extra principal on a 30-year is a great strategy and keeps your required payment low. The tradeoff: 30-year rates are higher than 15-year rates, and most people do not consistently pay extra. A 15-year term locks in the lower rate and builds the discipline into the loan itself.

Yes. Because the lender's money is at risk for half as long, 15-year fixed rates typically run 0.5 to 0.8 percentage points below comparable 30-year rates. That gap, applied to hundreds of thousands of dollars, is a major part of the savings.

Anyone whose budget can handle the higher payment while still funding an emergency fund and retirement savings. It is especially popular with refinancers, second-time buyers, and anyone determined to reach their debt-free Freedom Day as fast as possible.

No. We are an educational resource and a community for people paying off their homes. We explain the math honestly, provide free tools, and can point you toward lenders who offer competitive 15-year mortgages.