How much interest does the 15-year actually save?

On a $320,000 loan, switching from 30 years at 6.5% to 15 years at 5.5% can save more than $150,000 in lifetime interest. Run your own numbers in the calculator — the difference depends on rates and principal.

Can I refinance from a 30-year into a 15-year later?

Yes. Many borrowers buy with a 30-year, then refinance to a shorter term once their income rises or rates fall. You'll pay closing costs, so it has to be worth it.

15-year vs. 30-year mortgage

The 15-year vs. 30-year choice is really a choice between cash-flow flexibility and total interest cost. Both can be the right answer; it depends on your situation.

What you trade

15-year: lower rate (often 0.5–1.0% lower), much higher monthly payment, dramatically less lifetime interest, faster equity buildup, done in half the time.
30-year: higher rate, much lower required payment, more lifetime interest, more flexibility if your income drops or you need cash for emergencies. You can always pay it like a 15-year voluntarily.

The hybrid: 30-year paid like a 15-year

Take the 30-year loan, then pay extra principal each month equal to the difference between the 15-year and 30-year payments. You capture most of the interest savings and you keep the option to drop back to the lower required payment if your situation changes — losing a job, a medical bill, a baby. The 15-year doesn't give you that escape hatch.

When the 15-year really wins

You have stable, high income with a wide gap between earnings and expenses.
You've already maxed out tax-advantaged retirement accounts.
You're close to retirement and want the loan gone before then.
The rate gap between 15- and 30-year is wide and you'd invest the savings conservatively rather than aggressively.

When the 30-year really wins

Your income is variable or early in your career.
You don't have a fully-funded emergency fund yet.
You expect to invest the payment difference and earn more than the rate spread.
You might move within 5–10 years — the term length matters less than the rate you pay during your stay.

Frequently asked

How much interest does the 15-year actually save?: On a $320,000 loan, switching from 30 years at 6.5% to 15 years at 5.5% can save more than $150,000 in lifetime interest. Run your own numbers in the calculator — the difference depends on rates and principal.
Can I refinance from a 30-year into a 15-year later?: Yes. Many borrowers buy with a 30-year, then refinance to a shorter term once their income rises or rates fall. You'll pay closing costs, so it has to be worth it.

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.