15 vs 30 Year Mortgage Comparison
15 vs 30 Year Comparison
Compare a 15-year mortgage with a 30-year mortgage
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Formula
Monthly = L[r(1+r)^n]/[(1+r)^n - 1]. Interest Savings = Total30 - Total15.
Frequently Asked Questions
Why is a 15-year mortgage rate lower than a 30-year?
Lenders offer lower rates on 15-year mortgages because they carry less risk. The shorter term means less exposure to market changes and faster equity building, typically saving 0.5-1% compared to 30-year rates.
How much do you save with a 15-year mortgage?
A 15-year mortgage typically saves you more than half the total interest compared to a 30-year mortgage, even with a lower rate. However, the monthly payment is significantly higher.
Which mortgage term should I choose?
Choose a 15-year if you can comfortably afford the higher payments and want to save on interest. Choose a 30-year for lower monthly payments and more financial flexibility, or if you plan to invest the difference.
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