How much does a 15-year mortgage save in interest?

On a $300,000 loan: 30-year at 7% = $418,527 total interest; 15-year at 6.5% = $162,000 total interest. The 15-year saves approximately $256,000 in interest over the loan life.

Is the 15-year always the better financial choice?

Not necessarily. If you can invest the monthly payment difference (approximately $700-$800) and earn 7%+ after-tax, the 30-year with investing may accumulate more wealth than the 15-year.

What is the 15-year rate discount?

15-year mortgages typically carry rates 0.5-0.75% lower than 30-year rates, adding to the interest savings on top of the shorter term.

15 vs 30 Year Mortgage Total Cost Comparison

Compare total cost, monthly payment, and equity buildup between 15-year and 30-year mortgages. Quantifies the true cost of the lower payment convenience of a 30-year.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Compare total cost, monthly payment, and equity buildup between 15-year and 30-year mortgages. Quantifies the true cost of the lower payment convenience of a 30-year. Use the 15 vs 30 year mortgage result to inform your calculation.

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15 vs 30 Year Mortgage Total Cost Comparison

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Frequently Asked Questions

How much does a 15-year mortgage save in interest?

Is the 15-year always the better financial choice?

What is the 15-year rate discount?