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30-Year vs 15-Year Mortgage: Which Saves You More?

6 min read · 2025-03-10

The 15-year mortgage saves massive interest — but the 30-year offers breathing room. Here's the real math.

The choice between a 30-year and 15-year mortgage is one of the biggest financial decisions homeowners face.

The Real Numbers on a $350,000 Loan

  • 30-year at 7.00%: $2,329/month | Total interest: $488,440
  • 15-year at 6.25%: $3,003/month | Total interest: $190,488
  • Interest savings with 15-year: $297,952
  • Extra monthly cost: $674/month

Arguments for the 30-Year

  • Lower required payment gives financial flexibility
  • $674/month difference invested at 8% over 30 years = $1M+
  • Better cash flow for emergencies and retirement contributions
  • You can always make extra principal payments

Best of both worlds: Take the 30-year but make extra principal payments each month. You get flexibility AND pay it off early.

Who Should Choose Each

  • Choose 30-year if: Early in career, variable income, maximizing retirement
  • Choose 15-year if: Stable mid-career income, 10–15 years from retirement

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