15-Year vs 30-Year Mortgage: Rates & Payment Comparison
The term you choose changes almost everything: monthly payment, total interest, how quickly you build equity, and how much house you can qualify for. Here's a clean comparison of the two most common fixed-rate mortgages in the US.
Worked example
Same $400,000 loan, current-average rates: 15-year at 6%, 30-year at 6.75%.
| Term | Rate | Monthly P&I | Total interest |
|---|---|---|---|
| 15-year fixed | 6% | $3,375 | $207,577 |
| 30-year fixed | 6.75% | $2,594 | $533,981 |
The 30-year cuts the monthly payment by about $781, but costs roughly $326,404 more in total interest.
When a 15-year wins
- You can comfortably afford the higher payment without crowding out savings.
- You want to be debt-free before retirement or a major life event.
- You value the psychological pull of a faster payoff and lower headline rate.
When a 30-year wins
- You want maximum monthly cash-flow flexibility.
- You'd rather invest the payment difference at a higher expected return.
- You plan to make voluntary overpayments — you get 15-year-like payoff with a 30-year safety net.
Model your own numbers
Drop your price, rate and term into the mortgage calculator to see PMI, HOA, taxes and amortization, or use the overpayment calculator to see what an extra $200/month does to a 30-year loan.