Lower required monthly payment
30-yearA longer amortization spreads principal across more scheduled payments.
SwitchWize decision guide
15-Year vs. 30-Year Mortgage: Which Fits Your Budget?
Compare the payment with your real monthly budget and the cost over the years you expect to keep the loan. A lower lifetime total does not help if the payment is too tight.
What you can expect
- No login required
- No credit pull
- Assumptions shown
- Sources included
Quick answer
A 15-year mortgage usually costs less in interest and pays off faster. A 30-year mortgage lowers the required monthly payment and gives your budget more room.
If 15-year
Usually better when the higher payment fits comfortably and paying off the home faster matters most.
If 30-year
Usually better when you need a lower required payment or your income changes from month to month.
Key number to watch
The 15-year path requires about $870.13 more per month under the entered rates.
Test your situation
See your result in dollars
Change any number below to match your situation. No login is required. Saved decisions stay on this device, and signed-in users can revisit them across devices.
$
Purchase price.
$
Cash applied to price.
%
Entered note rate.
%
Entered note rate.
years
Years before you may sell, pay off, or refinance.
$
Your comfortable budget for principal and interest, before taxes and insurance.
Your answer so far
The 15-year payment is about $870.13 more per month. Over 10 years, the entered 30-year path has $59,220.55 more interest and entered closing costs, before valuing flexibility or investment results.
See the full breakdownThe 15-year payment is about $870.13 more per month. Over 10 years, the entered 30-year path has $59,220.55 more interest and entered closing costs, before valuing flexibility or investment results.
15-year
$3,268
monthly principal + interest
$59,221 vs. baseline
30-year
$2,398
monthly principal + interest
Try a scenario
What could change this
The 15-year path requires about $870.13 more per month under the entered rates.
How certain: high
At roughly 4.50%, the modeled 10-year interest-and-cost paths cross.
How certain: scenario dependent
Check these assumptions
- • Principal and interest are modeled; property taxes, insurance, mortgage insurance, points and association dues are excluded unless reflected in entered closing costs.
- • The investment scenario is hypothetical and can lose value; mortgage interest savings are not the same as a market return.
What matters most
Lower lifetime interest at entered rates
15-yearEntered lifetime principal-and-interest cost is $588,300.09 for the 15-year path and $863,352.76 for the 30-year path.
More equity after 10 years
15-yearThe modeled remaining balances are $171,106.54 and $334,742.9, respectively.
Budget flexibility
30-yearThe lower contractual payment leaves more room, but the benefit depends on what the borrower actually does with the difference.
Side-by-side comparison
Required payment
- 15-year
- Higher
- 30-year
- Lower
Payoff schedule
- 15-year
- 180 payments
- 30-year
- 360 payments
Equity pace
- 15-year
- Faster
- 30-year
- Slower without extra principal
Flexibility
- 15-year
- Lower minimum-payment flexibility
- 30-year
- Higher, if extra cash is used deliberately
What could go wrong
15-year fixed mortgage
- What needs to work
- The payment remains comfortable through income shocks.
- Common problem
- Housing payment crowds out reserves.
- What it could cost
- Forced borrowing or missed payments.
- How to prepare
- Refinancing depends on future approval and rates.
30-year fixed mortgage
- What needs to work
- Flexibility is used productively.
- Common problem
- The payment gap is spent without reducing debt or investing.
- What it could cost
- More lifetime interest.
- How to prepare
- Extra principal can accelerate payoff if terms allow.
A simple backup plan
Build flexibility into the payment
A 30-year loan can pay off faster, but only if you consistently make extra payments.
- 1Choose a required payment that still fits if income changes.
- 2Automate an extra payment you can sustain.
- 3Build emergency savings before paying the mortgage faster.
Educational illustration only. The right amount depends on your needs and timing.
What to do next
Question 1
Does the 15-year payment fit with reserves and other goals?
Yes: Compare horizon interest and equity.
No: Favor the 30-year or a lower price.
Question 2
Will you keep the loan near 15 years?
Yes: Lifetime interest matters more.
No: Focus on horizon balance and costs.
Question 3
Will you invest or prepay the gap consistently?
Yes: The 30-year flexibility has measurable value.
No: The forced 15-year schedule may help execution.
Plain-text decision tree. Does the 15-year payment fit with reserves and other goals? If yes, Compare horizon interest and equity. If no, Favor the 30-year or a lower price. Will you keep the loan near 15 years? If yes, Lifetime interest matters more. If no, Focus on horizon balance and costs. Will you invest or prepay the gap consistently? If yes, The 30-year flexibility has measurable value. If no, The forced 15-year schedule may help execution.
When to check again
- Rate quotes change.
- Home price or down payment changes.
- Income becomes less stable.
- Expected move date changes.
- Extra-payment behavior changes.
Methodology
Both paths use fixed-rate amortization. Horizon interest, remaining principal and lifetime interest are shown separately.
Rates and closing costs are editable scenarios; no live quote is implied.
- • Taxes, insurance, mortgage insurance and points are excluded.
- • Investment returns are hypothetical and volatile.
- • Tax deductions and refinancing are excluded.
Mortgage guidance is reviewed quarterly and after rule changes. Editorial conclusions do not depend on affiliate availability.
Sources
Frequently asked questions
Does a 15-year mortgage always have a lower rate?
Not always. Compare actual loan estimates.
Is principal a cost?
No. Principal reduction builds equity, so the model separates it from interest.
Can I pay a 30-year loan like a 15-year?
Extra principal can shorten payoff, subject to loan terms and consistent execution.
Should I invest the difference?
That depends on risk, taxes, fees and behavior; returns are not guaranteed.
What costs are excluded?
Taxes, insurance, mortgage insurance and unentered closing costs.
Which term is safer?
The safer term is the one whose required payment remains affordable under stress.