📋 Table of Contents
30-Year vs. 15-Year Mortgage
Choosing between a 30-year and 15-year mortgage term significantly affects your monthly payment, total interest paid, and how quickly you build home equity.
Key Differences
| Factor | 30-Year | 15-Year |
|---|---|---|
| Monthly payment | Lower | Higher |
| Total interest paid | Significantly more | Significantly less |
| Interest rate | Typically higher | Typically lower |
| Equity building | Slower | Faster |
Which Should You Choose?
Choose 30-year if: you want lower monthly payments and more budget flexibility, or plan to invest the difference elsewhere. Choose 15-year if: you can comfortably afford higher payments and want to minimize total interest and build equity faster.
A Middle Ground Approach
Some borrowers choose a 30-year mortgage but make additional principal payments when possible, gaining flexibility during tighter months while still working toward faster payoff during better months.
Common Mistakes
Choosing a 15-year term that strains your monthly budget without an adequate emergency fund — a 30-year loan with optional extra payments often provides more financial flexibility.
Frequently Asked Questions
Significantly more — often more than double the total interest compared to a 15-year term on the same loan amount, due to both the longer term and typically higher rate.
Yes — making extra principal payments when possible can significantly shorten your payoff timeline and reduce total interest, while retaining the flexibility of lower required payments.