Comparison · Buying
15 vs 30 year mortgage
The 15-year term is usually framed as the disciplined choice. It is — but discipline you cannot reverse is also risk, and there is a version of this that gets most of the benefit without the rigidity.
Is a 15 or 30 year mortgage better?
A 15-year term carries a lower rate and dramatically less total interest, but the payment is far higher and the commitment is fixed. A 30-year term with voluntary extra principal reaches a similar outcome while leaving you the option to stop paying extra in a bad month.
| 15 year | 30 year | |
|---|---|---|
| Monthly payment | Substantially higher | Lower |
| Interest rate | Typically lower | Typically higher |
| Total interest | Far less | Far more |
| Flexibility | Fixed — the payment is the payment | High — extra principal is optional |
| Qualifying | Harder, the payment counts in DTI | Easier |
| Equity build | Fast | Slow early on |
| Best when | Income is high and stable | You want optionality |
A 15-year term usually wins when
- Your income is high, stable, and the larger payment is comfortable.
- You are close to retirement and want the loan gone.
- You would not reliably make extra payments voluntarily.
- The rate discount on offer is meaningful.
A 30-year term usually wins when
- You want the option to pay extra without the obligation.
- The lower payment lets you qualify for the home you actually want.
- Your income varies month to month.
- You have higher-rate debt or an unfunded emergency reserve.
Worked through
The middle path: take the 30-year term and pay it like a 20-year. You capture most of the interest saving, keep the lower payment as a floor you can fall back to, and never have to ask a lender for permission in a bad month. The early payoff calculator shows exactly what any extra amount buys.
Frequently asked
Is a 15 year mortgage worth the higher payment?
If the payment is comfortable and you would not otherwise make extra principal payments, usually yes — the interest saving is large. If it strains the budget, a 30-year term paid aggressively gets most of the benefit with none of the obligation.
Can you pay off a 30 year mortgage in 15 years?
Yes, by adding extra principal each month. You will pay slightly more interest than a true 15-year loan because the rate is typically a little higher, but you keep the right to stop at any time.
Does a 15 year mortgage have a lower rate?
Usually, because the lender's money is at risk for half as long. The discount varies with market conditions and is worth checking rather than assuming.
Still not sure which applies to you?
Tell us the situation and we'll tell you which side of the comparison you're on.