15 vs 30 Year Mortgage: Which Is Better?
Choosing between a 15-year and 30-year mortgage is one of the most impactful decisions for your long-term finances. A 15-year loan accelerates equity and slashes lifetime interest but requires higher monthly payments. A 30-year loan lowers the required monthly payment and improves cash-flow flexibility—useful if you prefer investing surplus cash elsewhere or want lower monthly obligations.
Run your exact numbers in the Mortgage Calculator, then compare total interest, monthly payment, and time to payoff to decide which fits your goals.
When 15-Year May Fit
- Stable high cash flow
- Goal to reduce interest cost
- Faster equity build
When 30-Year May Fit
- Need lower mandatory monthly payment
- Prefer cash-flow flexibility
- Plan to prepay opportunistically
Practical example
A $300,000 mortgage at 4.5%: a 30-year payment is about $1,520, while a 15-year payment is about $2,299. The 15-year loan will save roughly $150,000 in interest over the life of the loan. Use the calculator to see exact differences for your figures.
FAQ
Does a 15-year mortgage always save money?
Yes, in total interest paid a 15-year loan saves money, but monthly payments are higher, so it only 'saves' if you can afford the larger payment.