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30-Year vs 15-Year Mortgage: Which Term Saves More?
Compare 30-year and 15-year fixed mortgages. See how term length affects your monthly payment, total interest, and long-term wealth.
Feature-by-Feature Comparison
See how 30-Year Fixed and 15-Year Fixed stack up
| Feature | 30-Year Fixed | 15-Year Fixed |
|---|---|---|
| Monthly Payment (300K) | ~$1,798 | ~$2,372 |
| Total Interest Paid | ~$347,515 | ~$126,926 |
| Interest Rate | Higher (~7%) | Lower (~6.25%) |
| Monthly Savings | $574/mo lower payment | Builds equity 2x faster |
| Qualification | Easier (lower payment) | Harder (higher payment) |
| Flexibility | More budget room | Locked into higher payment |
Which Loan Is Right for You?
Each loan type has ideal scenarios
The Bottom Line
The 30-year mortgage offers flexibility and lower payments, while the 15-year saves over $200K in interest and builds equity twice as fast. If you can comfortably afford the 15-year payment, it is the mathematically superior choice. But the 30-year gives you breathing room and the option to invest the difference.
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Frequently Asked Questions
Common questions about 30-Year Fixed vs 15-Year Fixed
Frequently Asked Questions
Yes! Making extra principal payments on a 30-year gives you the flexibility of lower required payments while still paying off early. However, you will not get the lower rate that a 15-year offers.
A 15-year mortgage saves significantly on total interest (often $200K+ on a $300K loan). However, if you invest the monthly savings from a 30-year in the stock market, you might come out ahead depending on returns.
This comparison is for informational purposes only and does not constitute financial advice. Rates, terms, and program availability are subject to change without notice and may vary based on creditworthiness, property type, loan amount, and other factors. Contact NMHL for current rates and personalized loan options. NMHL NMLS# 2557591. Equal Housing Lender.