15-Year vs. 30-Year Mortgage
See how loan term changes the monthly payment and total interest on the same mortgage balance and APR.
$320,000 mortgage at 6.25%
Estimated total interest is about $173,876 over 15 years versus $389,306 over 30 years. Taxes, insurance, fees, and potential rate differences are excluded.
What the shorter term buys
More of each required payment goes toward paying the loan off on an accelerated schedule. The payment is substantially higher, but the balance falls faster and interest has fewer years to accumulate.
- Faster equity growth from scheduled principal payments.
- Lower total interest when the APR and balance are equal.
- Less monthly flexibility because the required payment is higher.
What the longer term preserves
A 30-year term reduces the minimum monthly obligation. That can preserve room for savings, repairs, childcare, or other goals. It also creates a longer interest horizon unless you make optional extra principal payments.
- Lower required payment.
- More time to repay and usually more total interest.
- Potential flexibility to pay extra when cash flow allows.
Compare real offers
Actual 15- and 30-year offers may have different APRs and closing costs. Compare the loan estimates, required payments, total interest, and the amount of emergency savings left after closing. Do not choose a term solely from the headline rate.
Frequently asked questions
Can a 30-year loan be paid like a 15-year loan?
Extra principal payments can shorten many loans, but confirm how the servicer applies them and whether the contract has restrictions.
Does the interest difference include investing the payment savings?
No. The comparison shows loan cash flows only and does not assume any investment return.