15-year vs. 30-year mortgage: what you trade

Two of the most common fixed-rate mortgage terms in the US are 15 and 30 years. Both use the same amortization math. The difference is how long you spread the balance out, and that one choice affects your monthly payment, total interest, and how fast you build equity.

The short version

• A 30-year term gives a lower required monthly payment and more room in your monthly budget, but you pay interest for twice as long.
• A 15-year term gives a higher required payment, a much faster payoff, and usually far less total interest.
• Lenders often price 15-year loans at a lower rate than 30-year loans, which widens the interest gap. That depends on the lender and the market, so compare actual quotes.

Rates: where to check, not what to assume

Freddie Mac's Primary Mortgage Market Survey (PMMS) publishes weekly national averages for both terms. In its release dated September 24, 2026 (the latest release when checked on 2026-09-26), it reported an average of 7.03% for a 30-year fixed-rate mortgage and 6.42% for a 15-year fixed-rate mortgage. These figures change every week, so check the latest weekly release at freddiemac.com/pmms. They are national averages based on a specific borrower profile, not a quote, and your rate can be higher or lower.

A worked example (illustration only)

These inputs are hypothetical and are not current market rates. Borrowing $250,000:

Same rate for both terms (6.0%)

• 30-year: payment $1,498.88, total interest $289,595.47
• 15-year: payment $2,109.64, total interest $129,735.57
• Difference: the 15-year payment is $610.76 a month higher, and total interest is $159,859.90 lower.

If the 15-year rate were lower (5.5%, still hypothetical)

• 15-year: payment $2,042.71, total interest $117,687.55

Equity build-up at 6.0%

• In month one, both loans charge $1,250.00 of interest. The 30-year payment puts $248.88 toward principal, while the 15-year puts $859.64 toward principal.
• After 5 years, the remaining balance is about $232,636 on the 30-year and about $190,023 on the 15-year.
• After 10 years, it is about $209,214 on the 30-year and about $109,122 on the 15-year.

Reasons people choose a 30-year term

• Lower required payment. This can make a home affordable on a monthly basis, or leave room for savings, emergencies, and other goals.
• Flexibility. You can often pay extra toward principal on a 30-year loan to speed up payoff, then stop if money gets tight. A 15-year loan makes the higher payment mandatory. Check for prepayment penalties first; the CFPB notes they normally do not apply to small extra principal payments, but says to confirm with your lender. See extra principal payments.
• Qualifying. A lower payment can affect how much a lender approves, since lenders look at your debt-to-income ratio: your monthly debt payments divided by your gross monthly income. The CFPB notes that different loan products and lenders have different DTI limits, so ask each lender how it applies to you.

Reasons people choose a 15-year term

• Less total interest. Fewer years of interest and often a lower rate.
• Faster equity. More of each payment reduces principal from the start.
• Debt-free sooner. For example, someone planning around a retirement date may want the mortgage paid off earlier.

Things the payment alone does not show

Neither figure above includes property taxes, homeowners insurance, PMI, or HOA dues, so your actual bill will usually be higher (see mortgage PITI). Closing costs and points can also differ between the two offers, so compare the APR and the full Loan Estimate for each term, not just the rate. See APR vs. interest rate.

Compare your own numbers

Run the same loan amount through the 30-year mortgage calculator and the 15-year mortgage calculator using the rates on your actual quotes. Then try the 30-year with an extra monthly payment equal to the difference between the two payments. Comparing the payoff dates and total interest shows how much flexibility costs for your numbers.

FAQ

• Is a 15-year mortgage always cheaper? In total interest, usually yes at similar rates, because you pay interest for half as long. But the required monthly payment is higher, and closing costs vary by offer.
• Can I pay a 30-year mortgage off in 15 years? Often, by paying extra principal each month, if your loan has no prepayment penalty that applies. You would likely pay more interest than on a 15-year loan if the 15-year rate is lower.
• Why do 15-year loans often have lower rates? One common explanation is that the lender is exposed to rate and repayment risk for a shorter time. Actual pricing depends on the lender and the market, so check actual quotes.
• Which term should I choose? It depends on your budget, savings, and plans. This site does not make that recommendation. A lender or housing counselor can go over your options.

Sources (checked 2026-09-25)

• Freddie Mac, Primary Mortgage Market Survey, release dated 09/24/2026 (latest as of 2026-09-26): https://www.freddiemac.com/pmms
• CFPB, "What is a debt-to-income ratio?" (last reviewed Aug 28, 2023): https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-to-income-ratio-en-1791/
• CFPB, "What is a prepayment penalty?" (last reviewed Sep 11, 2024): https://www.consumerfinance.gov/ask-cfpb/what-is-a-prepayment-penalty-en-1957/

Disclaimer

Estimates only. This page is educational and is not financial, lending, legal, or tax advice. Figures come from the numbers you enter and cover principal and interest only. Your actual loan terms depend on the lender, your credit, and costs such as property taxes, homeowners insurance, PMI, and fees. Before you borrow, get a Loan Estimate or other official disclosure from each lender and compare them. MyLoanCalculator.app is not a lender and does not make loan offers.