15-Year vs 30-Year Mortgage
A 15-year loan has a higher payment and less total interest; a 30-year loan has a lower payment and more cash flow. There is no universal answer: it depends on whether you can carry the higher payment, invest the difference, and when you will sell.
Compare total cost
Use the same loan and rate to compare 15- and 30-year payments and total interest; the 15-year usually pays much less interest.
But the extra cash flow from a 30-year may be better used for high-interest debt or investing.
| Term | Strength | Tradeoff |
|---|---|---|
| 15-year | Less total interest, faster payoff | Higher payment, tighter cash flow |
| 30-year | Lower payment, flexibility | More total interest |
Paying early
You can pay a 30-year loan at a 15-year pace, getting close to the same payoff while keeping the lower required payment.
Confirm there is no prepayment penalty and mark extra payments for principal.
FAQ
Is 15 years always cheaper?
Usually less interest, but a higher payment; compare cash flow and investment returns.
How fast can a 30-year loan be paid off?
At a 15-year payment pace, about 15 years; use an extra-payment calculator for exact numbers.