Is the 15-year rate always lower?

Lenders typically offer a lower rate on shorter terms because they take on less risk. The actual gap depends on the lender and market.

Why might I prefer a 30-year if I can afford a 15-year?

Flexibility. A 30-year requires a smaller payment, so a job loss or expense shock is easier to absorb. You can still pay it like a 15-year voluntarily.

15 vs. 30 Year Mortgage Comparison

See the trade-off between cash flow and total interest — and what happens if you take a 30-year loan but pay it like a 15-year.

15 vs. 30 Year Comparison

Generated … · Assumption set 2026-04-30

Side-by-side scenarios

30-year fixed

Monthly payment$2,022.62

Lowest payment

Total interest$408,140.64

Number of payments360

Payoff date2056-05-01

15-year fixed

Monthly payment$2,665.89

Total interest$159,859.47

Lowest interest

Number of payments180

Fastest payoff

Payoff date2041-05-01

30-year, paying 15-year amount

Monthly payment$2,022.62

Total interest$198,351.94

Number of payments195

Payoff date2042-08-01

Comparison chart

Show data table

Scenario	Monthly	Total interest
30-year fixed	$2,022.62	$408,140.64
15-year fixed	$2,665.89	$159,859.47
30-year, paying 15-year amount	$2,022.62	$198,351.94

Assumptions used

Assumption set 2026-04-30

Home price: $400,000user input
Down payment: $80,000 (20.00%)user input
Loan amount: $320,000calculated
30-year rate: 6.50%user input
15-year rate: 5.80%user input

How this calculator works

A 15-year mortgage usually offers a lower interest rate but a much higher monthly payment, while a 30-year mortgage frees up cash flow at the cost of much more lifetime interest. A 30-year loan paid like a 15-year is a hybrid: lower required payment, but interest savings if you keep paying extra voluntarily.

Reviewed for calculation accuracy and clarity by Mortgage Well calculation team · April 30, 2026

When to use this

You're choosing between two terms during a purchase or refinance.
You want to know how much interest you'd save by paying a 30-year like a 15-year.
You're balancing cash-flow flexibility against total interest cost.

Methodology

We run three scenarios on the same principal: a 15-year loan at the 15-year rate, a 30-year loan at the 30-year rate, and a 30-year loan with an extra monthly principal payment equal to the difference between the two scheduled payments. Each scenario produces its own monthly payment, total interest, and payoff date, and we highlight the best result by category.

Assumptions

Each scenario uses the same loan principal (home price minus down payment).
Rates you enter are the lender-quoted fixed rates — actual market spreads vary.
The 'pay 30-year like a 15-year' scenario uses constant extra principal each month.

Example

On a $320,000 loan, the 15-year option may cost about $700 more per month than the 30-year, yet save more than $150,000 in lifetime interest. Paying that same higher amount on a 30-year captures most of the savings while preserving the optional flexibility.

Frequently asked

Is the 15-year rate always lower?: Lenders typically offer a lower rate on shorter terms because they take on less risk. The actual gap depends on the lender and market.
Why might I prefer a 30-year if I can afford a 15-year?: Flexibility. A 30-year requires a smaller payment, so a job loss or expense shock is easier to absorb. You can still pay it like a 15-year voluntarily.

Estimates only. This calculator is not a loan offer, loan approval, official Loan Estimate, Closing Disclosure, tax advice, legal advice, or financial advice. Actual payments, rates, taxes, insurance, mortgage insurance, closing costs, and loan terms may vary. Contact a qualified lender, tax professional, or financial advisor for guidance.