15 vs 30 Year Mortgage Calculator
Example: Loan amount: 350000 $ · 15-year interest rate: 5.85 % · 30-year interest rate: 6.6 %
| 15-year monthly payment | $2,925 |
| 30-year monthly payment | $2,235 |
| Interest saved with 15-year | $278,172 |
Worked example
On a $350,000 loan, a 15-year at 5.85% costs about $2,916 a month, while a 30-year at 6.6% costs about $2,236 — roughly $680 more each month for the shorter term. But over the life of the loan, the 15-year pays around $175,000 in interest versus about $455,000 on the 30-year, saving nearly $280,000. The trade is a higher monthly commitment now for enormous long-run savings.
Frequently asked questions
Why is the 15-year rate lower?
Lenders take on less risk over a shorter term, so 15-year mortgages typically carry a rate roughly half to three-quarters of a point below comparable 30-year loans. That lower rate compounds the interest savings on top of the shorter payoff.
Is a 15-year mortgage always better?
Not for everyone. The higher payment can strain a budget and crowd out retirement savings or an emergency fund. Some borrowers prefer a 30-year for flexibility and simply pay extra when they can, capturing much of the benefit without locking in the higher required payment.
Can I get a 30-year and pay it off in 15?
Yes. Taking a 30-year and making extra principal payments gives you flexibility — you can pay it down aggressively in good years and fall back to the lower required payment in tight ones. You will pay a slightly higher rate for that option.
How much income do I need for a 15-year?
Because the payment is higher, lenders apply the same debt-to-income limits to a larger number, so you qualify for a smaller loan or need more income for the same home. Check both scenarios against the 28/36 affordability guideline.