15-Year vs. 30-Year Mortgage
Payment and payoff
A shorter loan term repays the same balance faster, usually with a larger scheduled payment. A longer term spreads repayment out and may reduce the monthly obligation.
Compare offered rates and fees rather than assuming a fixed difference. Taxes, insurance and association fees do not fall simply because the mortgage term changes.
Total interest and reserves
Paying principal faster can reduce lifetime interest but may leave less cash for savings and emergencies. Use the same loan amount when comparing amortization schedules.
Consider a longer term with optional principal payments only after checking how the servicer applies them and whether relevant restrictions exist. Optional payments require discipline.
Choose a sustainable schedule
The shorter term is not automatically best if its payment strains your budget. Compare the ability to cover maintenance, income interruptions and other goals.
A calculator illustrates trade-offs. A lender must determine eligibility and actual terms. Request written estimates for both schedules.