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 will come with a higher interest rate and you’ll pay more in interest over the loan term. But because of the extended term, your monthly mortgage payment will be lower and likely more manageable.
A 15-year mortgage is good for people who…
- Can easily make the monthly payments and have cash left over to save
- Want to reduce the amount of interest they pay over the life of their loan
- Want a lower interest rate
- Are nearing the end of their working years and want to pay off their mortgage before they retire.
A 30-year mortgage is good for people who…
- Want lower monthly payments
- Want the flexibility of paying more than the minimum payment, but are not required to do so
- Earn money through freelance or contract work but might have differing levels of income each month or year
- Want to use the extra cash for savings or investments