15-year vs. 30-year mortgage: Which is right for you?

Your monthly mortgage payment will probably be the largest line item in your household budget. The term of your mortgage, or how long you have to pay it off, impacts the size of that payment. Most people choose 30-year mortgages, which have lower monthly payments, but cost more in interest. A 15-year mortgage requires a higher monthly payment — but you’ll typically receive a lower interest rate and pay less in interest overall. 

The difference between 15-year vs. 30-year mortgages

The main difference between 15- and 30-year mortgages is how long you have to pay them off. For many individuals buying a home, a 30-year mortgage is best because it spreads payments over a longer period, leaving you with lower monthly payments. A 15-year loan requires higher monthly payments because you’re paying it off in half the time.

In exchange, 15-year mortgages typically offer lower mortgage rates, and you’ll pay significantly less in total interest over the life of the loan.

Calculate the cost of a 15-year vs. 30-year mortgage

The cost difference between a 15- and 30-year mortgage can be significant. 

Below is an example of the options on a $300,000 loan. We’ve assumed 6.74% interest on the 30-year term and 6.14% interest on the 15-year term, based on Bankrate’s national survey of lenders as of February 21.

Choosing the 15-year mortgage would save roughly $216,000 in total interest compared to the 30-year mortgage, but it comes with monthly payments that are over $600 higher.

15-Year Or 30-Year Fixed Mortgage Calculator

You can crunch your own numbers with Bankrate’s 15-year or 30-year fixed mortgage calculator.

Visit the calculator

How to choose between a 15-year vs. a 30-year mortgage

Bear in mind that you’ll need stronger financials to qualify for a 15-year mortgage, because the monthly payments are higher. Lenders will want to see a higher income and lower debt-to-income ratio.

Assuming you can qualify for both loans, though, you’ll want to make your decision on the monthly payment you can afford. If you can manage the monthly payment on a 15-year loan without becoming house poor, and while still saving for retirement and other goals, it’ll save you a lot of money in the long run. If not, a 30-year loan is the way to go. 

• Calculate mortgage payments for homes at multiple price points: Bankrate recommends following the 28% rule and the 36% rule. These rules advise buyers that no more than 28% of their gross income should go toward a mortgage payment each month and that no more than 36% of their gross monthly income should go toward monthly debt payments.
• Take a close look at your monthly budget. Evaluating your spending plan and financial commitments can help you determine the mortgage payment that will be comfortable for you. If you’ll feel consistently overextended by the payments on a 15-year mortgage, you may consider getting a 30-year loan and making extra payments to it for an earlier payoff.
• Understand your income and obligations. If your income is seasonal, commission-based or otherwise variable, you may have a hard time qualifying for a 15-year mortgage, and you may value the flexibility you get with a 30-year loan. 

Bankrate’s mortgage calculator can help you estimate monthly payments for a 30-year versus a 15-year mortgage so you can get a clearer picture of how much house you can afford based on your income. 

15-year mortgage pros and cons

A 15-year mortgage might sound like a more attractive option. You’ll likely save a bundle in interest and pay off your home faster. Still, there are trade-offs to consider.

Pros

• Lower interest rate: Lenders often offer a slightly lower rate on 15-year loans, which reduces overall borrowing costs compared to a 30-year mortgage.
• Much less interest paid over the life of the loan: Because you repay the balance in half the time and often at a lower rate, total interest amounts can be significantly lower.
• Loan is paid off sooner: You’ll own your home outright in 15 years, freeing up cash flow later in life and reducing long-term debt obligations.
• Builds home equity faster: A larger portion of each payment goes toward principal, helping you accumulate equity more quickly.

Cons

• Higher monthly payments: Paying off the loan in half the time means larger regular payments, which can be a strain on your monthly budget.
• Can be harder to qualify for: Lenders evaluate your debt-to-income ratio based on the higher payment, which may limit how much you can borrow.
• Less budget flexibility: With more income needed for loan payments, you may have less room for savings, emergencies or other financial goals.

30-year mortgage pros and cons

A 30-year mortgage may give you more breathing room in your monthly budget, and it’s generally easier to qualify for. But you’ll pay far more in interest.

Pros

• Lower monthly payments: Spreading payments over 30 years reduces the required monthly payment, making homeownership more affordable.
• Greater payment flexibility: You can typically choose to make extra principal payments when your budget allows, while still benefiting from a lower required payment.
• More room in your budget: Smaller monthly payments free up cash for emergencies, retirement or other needs.
• Lower income qualifications: Because the required payment is lower, it may be easier to meet lender debt-to-income ratio requirements.

Cons

• Typically higher interest rate: Lenders often charge slightly higher rates for 30-year loans compared to 15-year loans.
• Longer repayment schedule: It takes twice as long to pay off the loan unless you make prepayments on the principal.
• Significantly higher total interest costs: Paying interest for 30 years, often at a higher cost, increases the total amount paid over the life of the loan.

What if you prepay a 30-year mortgage?

You can always take out a 30-year mortgage and make higher or more frequent payments to pay it off sooner. Also known as prepaying your mortgage, this strategy effectively lets you create your own 15-year mortgage from a 30-year one.

You can prepay your mortgage by:

• Making biweekly payments: With this strategy, you’ll divide your typical monthly payment in half and pay that amount every two weeks. At the end of a year, this translates to 13 monthly payments.
• Paying extra as your budget allows: You may commit to paying an extra $100 — or any amount — toward your principal every month, or you may pay extra occasionally, when you have space in your budget.
• Recasting your mortgage: If you have a large amount of extra money to put toward your loan — usually at least $10,000 — consider recasting. In this scenario, you make a lump-sum payment toward your principal, and your lender will reamortize your loan. Your rate and term will stay the same, but your monthly payment will decrease. 

Before going this route, check whether your loan has a prepayment penalty. These days, most mortgages don’t — but if yours does, the penalty usually only goes into effect if you pay off the mortgage, or a significant portion of it, within the first three to five years of the loan.

Alternatives to 15-year and 30-year mortgages

Although they’re the most common, 15- and 30-year mortgages aren’t the only terms or loan types available. Alternatives include:

• 10 year: These loans are ideal if you want to be aggressive with your repayment strategy. Expect a steep monthly payment, which could be worth it considering the amount of interest you’ll save.
• 20 year: You’ll get a slightly more affordable monthly mortgage payment than a 10-year mortgage but can still save a bundle in interest and pay your loan off faster.
• 40 year: Relatively rare, but offers the lowest monthly payments. Still, you might want to refinance later to increase your monthly payment, but minimize the overall cost.
• Interest-only mortgage: This option lets you make interest-only payments during an introductory period, followed by much higher principal and interest payments over the remaining loan term.
• Adjustable-rate mortgage (ARM): ARMs are generally 30-year mortgages with low, fixed rates during an initial period. After that, the mortgage enters a variable-rate period, during which the rate changes periodically. For example, with a 10/1 ARM, you’ll get a fixed interest rate for the first decade of your loan. When that ends, your rate will change once a year for the remaining 20 years. ARMs are best if you plan to move or refinance before the introductory period ends.

Consider how long you plan to stay in your home versus the duration of your mortgage. If your goal is to get as low a payment as possible for a short time, ARMs or interest-only mortgages might make sense. If you’re planning to buy your forever home, a fixed-rate loan with predictable payments is probably the best choice.

Frequently asked questions

• Can you refinance from a 30-year to a 15-year mortgage?

  Yes. Assuming you qualify, you can refinance from a 30-year loan to any other loan term your lender offers. If you find, after taking out your mortgage, that you can afford to pay more on a regular basis, a 15-year loan may be an option.

• Is it better to get a 15-year mortgage or make extra payments on a 30-year mortgage?

  This depends on your personal financial situation. If you can comfortably afford the monthly payments on a 15-year mortgage, and your income is stable and likely to stay the same or increase, you’ll receive the benefits of a 15-year loan throughout your entire term. If you choose to make extra payments on a 30-year loan, you’ll pay a higher interest rate, but you can still decrease the total interest you pay by paying off the loan early. Plus, you can choose not to make an extra payment if you’re feeling strapped in a particular month.

• What are current 15-year vs. 30-year mortgage rates?

  On July 8, 2025, the national average rate for a 15-year fixed-rate mortgage is 6.14%. You can find today’s rate for 15-year loans here. The national average rate for a 30-year fixed-rate mortgage is 6.74%. You can find current rates for 30-year loans here.