Is a 15-Year Mortgage Better Than 30-Year?

A 15-year mortgage has a higher monthly payment but much less total interest over the life of the loan. Whether it’s “better” depends on your budget and goals.

Higher payment, less interest

With a 15-year loan, you pay more each month because you’re paying off the same balance in half the time. In exchange, the interest rate is often a bit lower, and you pay far less total interest.

Example: On a $300,000 loan at 6.5%, a 30-year mortgage has a monthly principal and interest of about $1,896 and total interest of about $382,000. A 15-year at 6% might be about $2,531 per month but only about $155,000 in total interest—saving over $225,000 in interest.

Use our mortgage calculator to plug in your numbers and compare 15 vs 30 years.

When a 15-year can make sense

• You can afford the higher payment without stretching your budget.
• You want to own your home outright sooner and pay less interest.
• You’re on a clear path to retirement and want the loan paid off by then.

When a 30-year may be better

• The 15-year payment would strain your cash flow or leave little for emergencies.
• You prefer to invest extra money instead of putting it all into the mortgage.
• You want flexibility (e.g., lower payment if one income disappears).

Bottom line

There’s no single “better” choice. Compare both options with our calculator, look at total interest and monthly payment, and choose what fits your income and goals. This is for informational purposes only and not financial advice.