30-Year vs. 15-Year Mortgage Comparison (Which Is Better?)
Choosing between a 30-year and a 15-year loan is the most important decision you will make when financing your home. A 30-year vs. 15-year mortgage comparison reveals a simple trade-off: do you want lower monthly payments today (30-year), or do you want to save hundreds of thousands of dollars in interest and own your home faster (15-year)?
In this guide, we’ll look at the math behind both options for 2026. We’ll show you how each choice changes how amortization works and why your long-term wealth depends on this decision. Understanding these differences is a core part of learning how mortgage payments are calculated.
The 30-Year Fixed Mortgage: The Safety Choice
The 30-year mortgage is the standard choice for most Americans. Because the debt is spread over 360 months, your required monthly payment is much lower. This gives you more “breathing room” in your budget for other expenses like travel, savings, or emergencies.
However, the cost of this safety is high. On a 30-year loan, you will pay significantly more in interest over the life of the loan. In fact, on a typical $300,000 mortgage, you might end up paying the bank back more in interest than the house originally cost!
Quick Tip: The 30-year loan is great for flexibility. You can always choose to learn how extra payments reduce interest and pay it off in 15 years anyway, but you aren’t forced to make that high payment every month.
Takeaway: The 30-year mortgage prioritizes your monthly cash flow today at the expense of your total wealth tomorrow.
The 15-Year Fixed Mortgage: The Wealth Builder
The 15-year mortgage is designed for people who want to be debt-free as quickly as possible. Because you are paying the house off in half the time, your monthly payments are much higher. However, lenders almost always offer lower interest rates for 15-year terms.
By choosing a 15-year term, you aren’t just paying the loan faster; you are drastically changing how loan term affects monthly payments. You build equity at a lightning pace, meaning you truly own more of your home with every single check you write.
Takeaway: The 15-year mortgage is a forced savings plan that saves you a fortune in interest and build equity twice as fast.
Direct Math Comparison: A $350,000 Loan
Let’s look at a $350,000 mortgage in 2026. Notice how a small difference in interest rate and a shorter term creates a massive difference in the final cost:
| Feature | 30-Year Fixed (6.5%) | 15-Year Fixed (5.75%) |
|---|---|---|
| Monthly (P+I) | $2,212 | $2,907 |
| Total Interest Paid | $446,419 | $173,184 |
| Total Cost of Loan | $796,419 | $523,184 |
| Total Savings | $0 | $273,235 |
You can run these exact scenarios for your own budget using our Home Page Calculator. It’s the fastest way to see if the extra $700 per month is worth the $273,000 in savings.
Takeaway: The 15-year loan costs more per month, but saves you over a quarter-million dollars in the long run.
Which One Is Right for You?
The right choice depends on your 2026 financial goals. If you are a first-time buyer with a growing family, the 30-year loan offers the security of a lower payment. If you are a high-earner or looking to retire in the next two decades, the 15-year loan is often the smarter financial move.
For a complete breakdown of all the costs included in these payments, check out our guide on the monthly mortgage payment breakdown. To learn more about our mission to provide fast, clear mortgage tools, visit our About Us page.
Frequently Asked Questions (FAQ)
Yes. This is a common reason people “Refinance.” If your income increases or interest rates drop, you can get a new 15-year loan to replace your old 30-year loan. Just remember that you will have to pay closing costs again for the new loan.
Almost always. Lenders view 15-year loans as lower risk because the money is being returned to them much faster. Usually, the rate on a 15-year loan is 0.5% to 1.0% lower than a 30-year loan.
No. Your property taxes and homeowners insurance stay the same regardless of which loan term you choose. You can see how these fit into your total bill using our calculator with taxes and insurance.
Need help deciding? Contact us if you have questions here.