15-Year vs 30-Year Mortgage Comparison
Choosing between a 15-year and 30-year mortgage is one of the biggest financial decisions you'll make. See exactly how each option affects your monthly payment, total interest, and long-term wealth
Interactive Comparison Calculator
20.0% down
Typically 0.5-0.75% lower than 30-year
30Choose 30-Year If...
- ✓Budget is tight: Need lower monthly payment for cash flow
- ✓Just starting out: Early in career, income will grow
- ✓Other priorities: Kids' college, retirement, emergency fund
- ✓Investment focus: Plan to invest payment difference
- ✓Flexibility matters: Want option to pay less if needed
- ✓Won't stay long: Planning to move in 5-10 years
15Choose 15-Year If...
- ✓Can afford it: Higher payment fits comfortably in budget
- ✓Hate debt: Want to be mortgage-free ASAP
- ✓Established career: High, stable income
- ✓Near retirement: Want home paid off before retiring
- ✓Maximize savings: Interest savings is priority
- ✓Forever home: Planning to stay 20+ years
💡 The Hidden Third Option: Best of Both Worlds
Take the 30-year mortgage but pay it like a 15-year. This gives you the flexibility of lower required payments with the interest savings of aggressive payoff.
✓ Lower Required Payment
If you lose job or have emergency, you can pay the minimum without penalty
✓ Same Total Interest
If you consistently pay extra to match 15-year schedule, interest is nearly identical
✓ Maximum Flexibility
Can adjust payment based on your situation each month - can't do that with 15-year
Common Myths Debunked
❌ Myth: "Always choose 15-year to save money"
Reality: If the higher payment strains your budget or prevents you from saving for emergencies/retirement, a 30-year might be better. Financial security > interest savings.
❌ Myth: "30-year means you'll be in debt forever"
Reality: Most people with 30-year mortgages either refinance, move, or pay extra. Very few actually keep the same mortgage for 30 years. Average homeowner moves every 7-13 years.
❌ Myth: "The interest rate difference doesn't matter much"
Reality: On a $280k loan, the typical 0.5% rate difference between 15 and 30-year saves ~$15,000-20,000 alone. Combined with shorter term = massive savings.
❌ Myth: "15-year is only for rich people"
Reality: Many middle-income buyers choose 15-year by buying less house than they qualify for. It's about priorities, not income. Buy a $250k house on 15-year vs $350k on 30-year.
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