Why are 15-year rates lower?

Shorter duration = less risk for the lender. They pass some of that savings to the borrower.

Should I pick a 30-year and pay extra, or a 15-year?

The 15-year forces the discipline and guarantees the savings. The 30-year gives flexibility at a higher total cost. Both are valid; match the choice to your risk tolerance.

What's the breakeven on a 15-year mortgage versus 30-year + investing the difference?

On a $320K loan: 15-year payment ~$2,700/mo (6.0%), 30-year payment ~$2,076/mo (6.75%). Difference: $624/month. If you take 30-year and invest the $624/month at 7% real return for 30 years: about $755K. If you take 15-year and invest $2,700/month for the last 15 years (after mortgage paid off) at 7%: about $850K. The 15-year wins by ~$95K, but the 30-year provides flexibility (you might lose your job in year 6 of the 15-year and lose the home). Many planners recommend 30-year + invest difference for risk-averse households; 15-year for high savers with stable income.

Can I switch from a 15-year to a 30-year if my income drops?

You can refinance to a 30-year if rates and your credit support it. Refinance closing costs: 2-4% of loan amount ($6,400-12,800 on a $320K loan). Some lenders have 'no-closing-cost' refis with rates 0.25-0.5% higher. If income drops temporarily (job loss, sabbatical), forbearance is often quicker than refinancing. If permanently, refinancing to a 30-year + payment recast may be the right move; consult a mortgage broker. Most 15-year borrowers don't end up needing this — strong income tends to be associated with stable income.

What's the right time to refinance to a 15-year?

When you've already been in a 30-year for 5-10 years (so the new 15-year doesn't significantly extend your total payoff timeline), rates are 0.5-1%+ below your current rate, and you have stable income to support the higher payment. Example: 5 years into a 30-year at 7%, refinance to 15-year at 5.75% with closing costs of $7K — saves about $90K total interest, finishes the loan 10 years sooner. Run scenarios in this calculator using current refi quotes; the math has to work for your specific situation.

How much extra equity does a 15-year build versus a 30-year?

After year 5: 15-year has paid down ~$74K principal (23% of $320K loan); 30-year has paid down ~$33K (10% of loan). The 15-year builds equity 2.2x faster. After year 10: 15-year ~$170K paid down (53%); 30-year ~$78K (24%). After year 15 (15-year payoff): 15-year fully owned; 30-year still owes ~$179K. The cash flow penalty (higher payment) is real, but the wealth-building speed is dramatic. Important: equity in your home isn't liquid — you can't easily access it without HELOC or refi.

Money & Finance · Free tool

15-Year Mortgage Calculator

See what a 15-year fixed mortgage payment looks like — and how much interest a shorter term saves vs a 30-year loan.

Updated June 2026

Home price ($)Down payment (%)Rate (%)Term (years)Property tax (% / yr)Insurance ($ / yr)HOA ($ / mo)PMI (% / yr) (waived at 20%+ down)

Monthly payment (all in)

$3,200

P&I

$2,700

Property tax

$400

Insurance

$100

Total cost over 15 years

Down payment: $80,000
Loan amount: $320,000
Total interest: $166,062
Total cost of home: $656,062

P&I uses the standard fixed-rate amortization formula. PMI assumes conventional rules (drops off when balance ≤ 80% of original price). Taxes, insurance, and HOA are held flat — in reality they drift up over time.

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What it does

A 15-year mortgage calculator with full PITI. Shorter term, lower rate (usually 0.5-0.75% below the 30-year), much higher monthly payment, but dramatically less total interest. This is the pragmatic choice if you can stretch into the higher payment comfortably.

On the same $320,000 loan, 15 years at 6.0% costs about $2,700/month but only $166,000 in total interest — less than half of the 30-year path. You own the home outright 15 years sooner. The tradeoff is a ~35% higher monthly payment, which has to fit in your budget without stress.

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Example input & output

Input

Home price: $400,000
Down: 20%
Rate: 6.0%
Term: 15 years

Output

P&I: $2,700/mo
Taxes: $400/mo
Insurance: $100/mo
Total PITI: $3,200/mo

Saves roughly $180,000 in total interest vs a 30-year on the same loan.

How to use it

Enter the home price and down payment.
Enter the rate — check for a specific 15-year quote, not a 30-year.
Add property tax rate and annual insurance.
Read the full PITI monthly and compare to the 30-year option.

When to use this tool

When monthly cash flow comfortably supports the higher payment.
When you want to be mortgage-free faster (approaching retirement, etc.).

When not to use it

If the higher payment would crowd out retirement savings or emergency fund.
If you need maximum flexibility in tight-budget months.

Common use cases

Comparing the two common fixed terms side by side.
Deciding if you can absorb the higher 15-year payment.
Refinancing from a 30-year into a 15-year to save interest.

Frequently asked questions

Why are 15-year rates lower?: Shorter duration = less risk for the lender. They pass some of that savings to the borrower.
Should I pick a 30-year and pay extra, or a 15-year?: The 15-year forces the discipline and guarantees the savings. The 30-year gives flexibility at a higher total cost. Both are valid; match the choice to your risk tolerance.
What's the breakeven on a 15-year mortgage versus 30-year + investing the difference?: On a $320K loan: 15-year payment ~$2,700/mo (6.0%), 30-year payment ~$2,076/mo (6.75%). Difference: $624/month. If you take 30-year and invest the $624/month at 7% real return for 30 years: about $755K. If you take 15-year and invest $2,700/month for the last 15 years (after mortgage paid off) at 7%: about $850K. The 15-year wins by ~$95K, but the 30-year provides flexibility (you might lose your job in year 6 of the 15-year and lose the home). Many planners recommend 30-year + invest difference for risk-averse households; 15-year for high savers with stable income.
Can I switch from a 15-year to a 30-year if my income drops?: You can refinance to a 30-year if rates and your credit support it. Refinance closing costs: 2-4% of loan amount ($6,400-12,800 on a $320K loan). Some lenders have 'no-closing-cost' refis with rates 0.25-0.5% higher. If income drops temporarily (job loss, sabbatical), forbearance is often quicker than refinancing. If permanently, refinancing to a 30-year + payment recast may be the right move; consult a mortgage broker. Most 15-year borrowers don't end up needing this — strong income tends to be associated with stable income.
What's the right time to refinance to a 15-year?: When you've already been in a 30-year for 5-10 years (so the new 15-year doesn't significantly extend your total payoff timeline), rates are 0.5-1%+ below your current rate, and you have stable income to support the higher payment. Example: 5 years into a 30-year at 7%, refinance to 15-year at 5.75% with closing costs of $7K — saves about $90K total interest, finishes the loan 10 years sooner. Run scenarios in this calculator using current refi quotes; the math has to work for your specific situation.
How much extra equity does a 15-year build versus a 30-year?: After year 5: 15-year has paid down ~$74K principal (23% of $320K loan); 30-year has paid down ~$33K (10% of loan). The 15-year builds equity 2.2x faster. After year 10: 15-year ~$170K paid down (53%); 30-year ~$78K (24%). After year 15 (15-year payoff): 15-year fully owned; 30-year still owes ~$179K. The cash flow penalty (higher payment) is real, but the wealth-building speed is dramatic. Important: equity in your home isn't liquid — you can't easily access it without HELOC or refi.

See how this compares

Head-to-head15-year vs 30-year mortgage15-year vs 30-year mortgage compared: monthly payment, total interest, flexibility, and who each term is actually best for. Use our free calculator to run the numbers on your own loan.

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