Our mortgage term comparison calculator lets you put numbers behind 15- and 30-year mortgages tradeoff, as well as 10- and 20-year options, so you can compare monthly principal and interest with the equity each term builds over the first 10 years.
15-Year vs. 30-Year Mortgage Basics
| Feature |
15-Year Mortgage |
30-Year Mortgage |
| Number of monthly payments |
180 |
360 |
| Required monthly payment |
Higher for the same loan amount |
Lower for the same loan amount |
| Interest rate |
Shorter terms generally receive lower rates, but actual quotes vary |
Rates are generally higher than comparable 15-year offers |
| Principal paid down |
Faster |
Slower |
| Total interest |
Generally much lower if held for the full term |
Generally higher because repayment is spread over more years |
| Monthly flexibility |
Lower because the required payment is larger |
Higher because the required payment is smaller |
How to Use the Mortgage Term Comparison Calculator
Enter the home price and down payment, then set an interest rate for each loan term. The calculator models 10-, 15-, 20- and 30-year fixed-rate mortgages independently, so you can use different rate quotes rather than assuming every term carries the same rate.
The calculator then compares:
- Monthly principal and interest
- Equity after 10 years
- Principal repaid during the first 10 years
- Interest paid during the first 10 years
The equity calculation assumes the home's value stays flat. It measures the equity created by your down payment and principal repayment, not appreciation or depreciation in the property's market value.
The calculator also shows principal and interest only. Property taxes, homeowners insurance, mortgage insurance and HOA dues can increase your actual monthly housing cost. The CFPB explains that your total monthly mortgage payment can include costs beyond principal and interest.
How a 15-Year Mortgage Compares With a 30-Year Mortgage
The biggest difference is how quickly you repay the same amount of principal.
With a 30-year mortgage, the balance is spread across 360 scheduled payments. A 15-year loan has only 180. Compressing the payoff period means each required payment has to retire much more principal.
The CFPB notes that shorter loan terms generally come with higher monthly payments, lower interest rates and faster equity building. The actual rate difference varies with the market, lender and your loan details.
A $400,000 Home Example
Consider a hypothetical $400,000 home with 5% down, leaving a $380,000 mortgage. Using 6.10% for the 15-year term and 6.75% for the 30-year term produces very different payment and equity results.
| Example |
15-Year |
30-Year |
| Loan amount |
$380,000 |
$380,000 |
| Hypothetical rate |
6.10% |
6.75% |
| Monthly principal and interest |
About $3,227 |
About $2,465 |
| Equity after 10 years* |
About $233,471 |
About $75,856 |
| Principal repaid in 10 years |
About $213,471 |
About $55,856 |
*This hypothetical example assumes the home's value remains $400,000 and counts the $20,000 down payment plus principal repaid as equity. It excludes taxes, insurance, mortgage insurance and HOA dues.
The 15-year payment is roughly $762 higher each month in this example, but it pays down about $157,600 more principal over the first decade. Change the rates in the calculator to match the loan offers you're actually comparing.
Why a 15-Year Mortgage Builds Equity Faster
A fixed-rate mortgage is amortized so that each scheduled payment includes interest and principal. Early in the loan, more of the payment generally goes toward interest because the outstanding balance is higher. As the balance falls, more goes toward principal.
The CFPB explains that this principal-and-interest split changes throughout a typical fixed-rate mortgage even though the required principal-and-interest payment stays the same.
A 15-year mortgage has much less time to repay the balance, so principal has to fall faster from the beginning. The calculator's 10-year equity chart makes this difference easier to see.
A 10-year mortgage pushes the same idea further. A 20-year term falls between the traditional 15- and 30-year choices. You can also compare 10-year vs. 15-year mortgages, 15- vs. 20-year mortgages and 20- vs. 30-year mortgages.
Does a 15-Year Mortgage Have a Lower Interest Rate?
Shorter mortgage terms generally receive lower rates than comparable longer-term loans, but there is no fixed difference between a 15-year and 30-year rate.
Freddie Mac publishes separate weekly national averages for 15- and 30-year fixed mortgages. The gap between them changes over time, and your own rate can differ from the national average based on your credit profile, down payment, loan type, points and other pricing factors.
That is why the calculator has a separate rate input for every term. If a lender quotes 5.90% on a 15-year mortgage and 6.50% on a 30-year mortgage, enter those exact assumptions rather than using one rate for both.
Is It Harder to Qualify for a 15-Year Mortgage?
The higher required payment can make a 15-year mortgage harder to fit within your qualifying income, but a 15-year term does not automatically come with its own higher credit-score requirement.
Lenders consider the proposed mortgage payment along with your income and other debts. The CFPB defines DTI as your monthly debt payments divided by your gross monthly income.
If the same $380,000 loan requires about $3,227 in principal and interest on a 15-year term instead of about $2,465 on a 30-year term, the larger payment takes up more of the same monthly income. Taxes, insurance and other qualifying housing expenses also have to be considered.
The lower 30-year payment can therefore support a lower DTI or allow a larger loan amount under the same income assumptions. Use the DTI calculator to see how different mortgage payments affect your ratio.
30-Year Mortgage Pros and Cons
Advantages of a 30-Year Mortgage
- Lower required monthly principal-and-interest payment
- More room in the monthly budget for savings and other expenses
- A lower payment can make the mortgage easier to fit within DTI requirements
- You can potentially make extra principal payments when your budget allows
Drawbacks of a 30-Year Mortgage
- More interest paid if you keep the mortgage for the full term
- Slower principal reduction
- Less equity created through repayment during the early years
- The scheduled payoff extends much farther into the future
15-Year Mortgage Pros and Cons
Advantages of a 15-Year Mortgage
- Faster principal repayment
- Less total interest when comparing similar loans held through payoff
- Faster equity growth from mortgage repayment
- Shorter path to owning the home without a mortgage
- Shorter terms generally receive lower rates than comparable 30-year loans
Drawbacks of a 15-Year Mortgage
- Much higher required monthly payment
- The larger payment can make mortgage qualification more difficult
- Less monthly cash available for savings, repairs and other financial goals
- Less flexibility if your income or expenses change
Can You Take a 30-Year Mortgage and Pay It Like a 15-Year?
You can often make extra principal payments on a 30-year mortgage to reduce the balance faster. This can shorten the payoff period and reduce interest without committing to the higher required payment of a 15-year loan.
That flexibility can be useful if your income varies or you want the ability to return to the lower scheduled payment when other expenses come up.
It is not identical to taking a 15-year mortgage. The 30-year loan may carry a higher interest rate, and the loan will only pay off faster if you consistently make the additional payments.
The CFPB notes that prepayment penalties do not normally apply to small extra principal payments, but you should check your loan terms. Use the extra mortgage payment calculator to model how additional principal changes the payoff timeline.
Which Mortgage Term Is Better for You?
A 15-year mortgage can make sense when the higher required payment fits comfortably alongside your savings, emergency fund and other monthly obligations. In return, you pay down the mortgage much more quickly.
A 30-year mortgage can make more sense when keeping the required payment lower is the priority. You still have the option to pay extra principal when your budget allows, while retaining the lower contractual payment.
A 20-year term can provide a middle ground if it is available at competitive pricing. A 10-year mortgage pushes the payment even higher but pays the balance down the fastest of the four terms modeled by the calculator.
Compare actual loan offers rather than the term alone. Interest rate, annual percentage rate, points, lender fees and required monthly payment can all change the economics of the choice.
The Bottom Line
The main 15-year vs. 30-year mortgage tradeoff is straightforward: a 30-year term lowers the required monthly payment, while a 15-year term pays down the mortgage much faster and generally reduces total interest.
The mortgage term comparison calculator shows what that tradeoff looks like over the first 10 years. Enter a separate rate for each term and compare the monthly principal-and-interest payment, principal repaid, interest paid and equity created through repayment. If neither the 15- nor 30-year option fits exactly what you want, the 10- and 20-year comparisons can show what happens between the two ends of the spectrum.
Frequently Asked Questions
What Is the Main Difference Between a 15-Year and 30-Year Mortgage?
A 15-year mortgage pays the balance off in 180 scheduled monthly payments, while a 30-year mortgage uses 360. The shorter payoff period creates a higher required monthly payment but results in faster principal repayment and generally less total interest.
How Much Higher Is a 15-Year Mortgage Payment?
There is no fixed difference. It depends on the loan amount and interest rate for each term. Enter the same home price and down payment in the calculator, then use the actual 15- and 30-year rates you want to compare.
Does a 15-Year Mortgage Always Have a Lower Rate?
Shorter terms generally receive lower mortgage rates than comparable longer terms, but the difference changes with market conditions and loan pricing. Compare actual quotes rather than assuming a specific rate discount.
Which Mortgage Term Is Better for a First-Time Buyer?
Neither term is automatically better for first-time buyers. A 30-year mortgage provides a lower required payment, while a 15-year mortgage reduces debt faster. Compare the payment with your income, emergency savings and other financial obligations.
Does a 15-Year Mortgage Require Better Credit?
Not simply because it is a 15-year term. Credit requirements depend on the mortgage program and lender. The larger 15-year payment can still make qualification more difficult because it uses more of your monthly income in the DTI calculation.
How Do Interest Rates Affect the 15-Year vs. 30-Year Comparison?
The interest rate affects both the monthly payment and the amount of interest you pay. Because 15- and 30-year mortgages can have different rates, use separate rate assumptions for each term when comparing them.
How Much Equity Does a 15-Year Mortgage Build in 10 Years?
It depends on the loan amount and interest rate. The calculator shows equity created through the down payment and principal repayment during the first 120 months while assuming the home's market value does not change.
Can I Pay Off a 30-Year Mortgage Early?
Yes, if your loan terms allow extra principal payments. Paying additional principal reduces the balance faster and can cut the amount of interest you pay. Check the mortgage for any applicable prepayment terms and make sure additional payments are applied as intended.
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