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Short answer
A 15-year mortgage has a higher monthly payment than a 30-year mortgage for the same loan amount, but you pay it off in half the time and usually pay much less interest overall. A 30-year mortgage keeps the required payment lower, which can make it easier to qualify and leaves more room in your budget, but you pay interest for twice as long. The CFPB notes that rates vary among lenders, especially for shorter terms, so compare both terms on Loan Estimates.
| Feature | 15-year mortgage | 30-year mortgage |
|---|---|---|
| Required monthly payment | Higher | Lower |
| Total interest paid | Usually much lower | Usually much higher |
| Interest rate | Often lower than 30-year; varies among lenders | Often higher than 15-year |
| Equity build-up | Faster | Slower, especially in early years |
| Qualifying | Higher payment raises your debt-to-income ratio | Lower payment can make qualifying easier |
| Flexibility | Less room in the monthly budget | You can still pay extra toward principal if your loan allows |
| FHA annual MIP | Separate, lower table for terms of 15 years or less | Standard table for terms over 15 years |
The CFPB defines your loan term as how long you have to repay the loan. The two most common fixed-rate terms are 15 and 30 years. With the same loan amount, a shorter term spreads the principal over fewer payments, so each payment is larger and more of it goes to principal from the start. According to the CFPB, shorter loan terms generally cost less overall but have higher monthly payments, and how much depends on the specific rates and terms you are offered.
A 30-year loan's lower required payment gives you room for savings, emergencies, or other goals. Many borrowers take a 30-year loan and pay extra toward principal when they can, which shortens the payoff, though the rate on a 30-year loan is often higher than on a 15-year loan. Ask your lender whether the loan has any prepayment penalty. Our extra payment calculator shows how extra payments change your payoff date.
A 15-year loan builds equity faster and ends sooner, but it locks in the higher payment. If money gets tight, you cannot lower the required payment without refinancing.
A 15-year mortgage is often worth a close look if:
A 30-year mortgage is often worth a close look if:
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Neither is right for everyone. A 15-year loan usually costs less in total interest but has a higher monthly payment. A 30-year loan has a lower payment and more flexibility but costs more interest over time.
Often, but not always. The CFPB notes that rates vary among lenders, especially for shorter terms, so compare offers for both terms.
Usually yes, by paying extra toward principal, if your loan has no prepayment penalty. Your rate will typically be the 30-year rate, though.
The higher payment increases your debt-to-income ratio, so the same income may qualify for a smaller loan amount on a 15-year term.
Yes. HUD Mortgagee Letter 2023-05 uses a separate, lower annual MIP table for FHA loans with terms of 15 years or less.
Look at the Total Interest Percentage (TIP) on each Loan Estimate, which shows how much interest you will pay over the life of the loan,, for the same loan amount and on the same day.
This page is general education, not a loan offer, commitment, or approval. Program rules and figures change; the figures here were checked against the sources below in October 2026. Your options depend on your credit, income, property, and each lender's guidelines. All loans are subject to approval.
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