15-Year or 30-Year Fixed Mortgage Calculator
15-year vs. 30-year mortgage
A 15-year mortgage allows you to pay off your mortgage in half the time of a 30-year mortgage. It typically comes with a lower interest rate, and you’ll pay much less interest over the life of the loan. However, because you’re paying off the loan twice as fast, your monthly payment will be much higher than with a 30-year mortgage.
A 30-year mortgage is the most popular option due to its flexibility. When compared to a 15-year, a 30-year comes with a higher interest rate, which means you’ll pay more in interest over the loan term. Because of the extended term, though, your monthly mortgage payment will be lower and more manageable.
A 15-year mortgage might be better if you:
- Can afford the monthly payments
- Want a lower interest rate
- Nearing retirement or otherwise want to pay off your mortgage
Learn more:
Pros and cons of 15-year mortgages
A 30-year mortgage might be better if you:
- Want lower monthly payments
- Don't have immediate plans to move