Selecting a 30-year or 15-year mortgage drives how quickly you build equity and how much interest you pay. Use this calculator-backed framework to evaluate payment comfort, savings goals, and lifestyle flexibility.

Key takeaways

• A 15-year mortgage can save tens of thousands in interest, but the monthly payment may be 40% to 60% higher.
• Calculate an accelerated payoff scenario on a 30-year loan to see if voluntary extra principal fits better than a mandatory 15-year payment.
• Consider future milestones like childcare costs, career changes, or investment plans before locking in a shorter term.

Model both terms using realistic rates

Run two mortgage calculator scenarios: one with a 30-year rate and one with a 15-year rate. Rates on shorter loans often come in 0.5% to 0.75% lower.

Add recurring costs such as property taxes and insurance to each scenario. This keeps comparisons accurate because impounds are due regardless of term length.

• Use the amortization export to visualize how fast principal drops with extra payments.
• Calculate total interest paid under each term to see the long-term savings difference.

Stress-test your budget for life events

Map out the next five years of known expenses. Childcare spikes, business launches, or education costs may make a 30-year payment safer.

If your household income is variable, prioritize payment flexibility. You can always add extra principal on a 30-year loan during high-income months.

• Assess emergency savings. Aim for six months of total expenses before committing to a 15-year payment.
• Consider investing the payment difference in retirement accounts if long-term wealth building is the priority.

Pair term decisions with refinancing checkpoints

Track rates quarterly. If spreads between 30-year and 15-year rates narrow, a refinance could optimize your payoff timeline.

Recalculate payoff strategies after major financial wins such as bonuses or debt payoff. You may jump to a shorter term later without stressing cash flow today.

Action steps to take next

1. Save dual calculator results as PDFs so your loan officer can quote the best term instantly.
2. Create a payoff tracker that shows how extra principal impacts each loan type.
3. Review household cash flow annually to confirm the chosen term remains sustainable.

Mortgage questions answered

Can I pay a 30-year mortgage off like a 15-year?

Yes. Make the equivalent 15-year payment toward principal each month and confirm the lender applies the surplus to principal only.

Do lenders charge more fees for 15-year mortgages?

Closing costs are usually similar. The main difference is the monthly payment, not the lender fees.