15-year vs 30-year mortgage

Shorter term, higher required payment

A 15-year mortgage repays principal faster, so the required monthly payment is usually higher and total interest is usually lower. A 30-year mortgage spreads repayment across more months, lowering the required payment but increasing the time interest can accrue.

Hold the other inputs steady

Use the same home price, down payment, taxes and insurance. Enter the actual rate offered for each term rather than assuming they are identical.

• Required monthly payment
• Total interest across the term
• Balance after five or ten years
• Cash left for savings, repairs and other goals
• Effect of optional extra payments on the 30-year plan

Compare both terms in Bricks

1. Create and save the 30-year mortgage plan.
2. Duplicate it and change the term and offered rate to 15 years.
3. Open Compare and review payment and total interest side by side.
4. Check the amortization balance at the same future date.
5. Save a third 30-year plan with an optional extra payment.

Test the payment you can sustain

A larger required payment leaves less room when income or expenses change. An optional extra payment on a longer term can provide flexibility, but it only creates the projected savings when you actually make it.

Loan rates, fees and qualification rules vary. Use real offers and review the complete loan estimate.