{"id":107814,"date":"2025-11-12T10:08:07","date_gmt":"2025-11-12T18:08:07","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=107814"},"modified":"2025-11-12T10:08:07","modified_gmt":"2025-11-12T18:08:07","slug":"15-vs-30-year-mortgage","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/15-vs-30-year-mortgage\/","title":{"rendered":"15-Year vs. 30-Year Mortgage: Which Loan Term Is Right for You?"},"content":{"rendered":"

When buying a home or refinancing, one of the biggest decisions you’ll make is choosing between a 15-year and 30-year mortgage. Whether you’re looking at <\/span>homes for sale in Los Angeles, CA<\/span><\/a> or exploring <\/span>properties in Austin, TX<\/span><\/a>, the loan term you choose can impact your monthly payments, interest costs, and long-term financial goals.<\/span><\/p>\n

In this Redfin article, we\u2019ll explain how 15-year and 30-year mortgages differ, including payment examples, and when each option makes the most sense.<\/span><\/p>\n

\"15<\/p>\n

What\u2019s the difference between a 15-year and 30-year mortgage?<\/span><\/h2>\n

The main difference between a 15-year and 30-year mortgage is how long you have to pay off the loan.<\/span><\/p>\n\n\n\n\n\n\n\n\n
Feature<\/b><\/td>\n15-year mortgage<\/b><\/td>\n30-year mortgage<\/b><\/td>\n<\/tr>\n
Loan term<\/b><\/td>\n15 years<\/span><\/td>\n30 years<\/span><\/td>\n<\/tr>\n
Monthly payment<\/b><\/td>\nHigher<\/span><\/td>\nLower<\/span><\/td>\n<\/tr>\n
Interest rate<\/b><\/td>\nLower<\/span><\/td>\nHigher<\/span><\/td>\n<\/tr>\n
Total interest paid<\/b><\/td>\nLower overall<\/span><\/td>\nHigher overall<\/span><\/td>\n<\/tr>\n
Time to build equity<\/b><\/td>\nFaster<\/span><\/td>\nSlower<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Because the loan is paid off in half the time, 15-year mortgages come with higher monthly payments, but you save significantly on interest and <\/span>build equity<\/span><\/a> much faster.<\/span><\/p>\n

How monthly payments and interest costs compare<\/span><\/h2>\n

Even a slightly higher interest rate over a 30-year term can have a major impact on total interest paid.<\/span><\/p>\n

Example 1: $400,000 loan<\/i><\/b><\/p>\n\n\n\n\n\n
Term<\/b><\/td>\nEstimated interest rate<\/b><\/td>\nMonthly payment<\/b><\/td>\nTotal interest paid<\/b><\/td>\n<\/tr>\n
15-year<\/b><\/td>\n5.25%<\/span><\/td>\n$3,213<\/span><\/td>\n$178,000<\/span><\/td>\n<\/tr>\n
30-year<\/b><\/td>\n~5.75%<\/span><\/td>\n$2,334<\/span><\/td>\n$440,000<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

You\u2019d save roughly $260,000 in interest<\/b> with a 15-year mortgage, though monthly payments are significantly higher.\u00a0<\/span><\/p>\n

Example 2: $250,000 loan<\/i><\/b><\/p>\n\n\n\n\n\n
Term<\/b><\/td>\nEstimated interest rate<\/b><\/td>\nMonthly payment<\/b><\/td>\nTotal interest paid<\/b><\/td>\n<\/tr>\n
15-year<\/b><\/td>\n5.30%<\/span><\/td>\n$2,011<\/span><\/td>\n$112,000<\/span><\/td>\n<\/tr>\n
30-year<\/b><\/td>\n5.80%<\/span><\/td>\n$1,467<\/span><\/td>\n$277,000<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

With this smaller loan amount, <\/span>you\u2019d save about $165,000 in interest<\/b> by choosing a 15-year term instead of a 30-year term.<\/span><\/p>\n

Everyone\u2019s financial picture is different. Use our <\/span>monthly mortgage calculator<\/span><\/a> to compare real numbers based on your home price, down payment, and interest rate.<\/span><\/p>\n

Rates are for illustrative purposes only and may vary based on lender and borrower qualifications.<\/span><\/i><\/p>\n

When a 15-year mortgage makes sense<\/span><\/h2>\n

A 15-year loan may be a good fit if you:<\/span><\/p>\n