15-year vs 30-year mortgage: the real trade-off
A 15-year mortgage has a higher monthly payment but a lower rate on average and far less total interest. A 30-year mortgage has a lower payment, which leaves more room in your budget and can make it easier to qualify, but you pay interest for twice as long. Freddie Mac's latest weekly national averages are shown below; your own offer will differ.
Latest national averages
National averages, not an offer Benchmarks for education only. Your rate depends on your credit, down payment, loan type, term and lender. All rates, history and methodology.
Why the 15-year costs less overall
Two things work in its favor: lenders usually price shorter loans at a lower rate, and you repay principal twice as fast, so interest is charged on a smaller balance for less time. This is amortization: early payments on any mortgage are mostly interest, and a shorter term moves you past that stage sooner.
| $300,000 loan | 30-year at 7.24% | 15-year at 6.60% |
|---|---|---|
| Monthly principal & interest | $2,044.49 | $2,629.84 |
| Total interest over the loan | $436,018 | $173,372 |
| Difference | 15-year costs $585.35 more a month and saves about $262,646 in total interest | |
Rates: Freddie Mac PMMS national averages for the week of Oct 29, 2026. Information provided by Freddie Mac.
Principal and interest only. Taxes, insurance and mortgage insurance are extra. These are national averages, not offers. Your rate depends on your credit, down payment, loan type and lender.
When a 30-year makes sense
- You need the lower payment to keep your debt-to-income ratio comfortable.
- You want flexibility: you can usually pay extra toward principal on a 30-year loan without being locked into the higher required payment (check that there's no prepayment penalty).
- You'd rather keep cash for an emergency fund, retirement or other goals.
When a 15-year makes sense
- You can comfortably afford the higher payment with savings to spare.
- You want to own the home outright sooner, for example before retirement.
- You want to minimize total interest.
Middle-ground options
Some lenders offer 20- or 25-year terms. You can also take a 30-year loan and make extra principal payments. Run each option through our mortgage calculator and compare Loan Estimates for both terms.
Frequently asked questions
Is a 15-year mortgage rate lower than a 30-year?
Usually. Freddie Mac's weekly survey has shown the 15-year average below the 30-year average; see the current figures on our rates page. Individual offers vary.
Can I pay off a 30-year mortgage in 15 years?
Often yes, by paying extra principal each month, as long as your loan has no prepayment penalty. You'd usually pay a bit more interest than with a true 15-year loan because the rate is typically higher.
Does a 15-year mortgage make it harder to qualify?
The higher payment raises your debt-to-income ratio, which can reduce how much you qualify to borrow.
Sources
- Freddie Mac: Primary Mortgage Market Survey (accessed October 29, 2026)
- CFPB: What is amortization? (accessed October 29, 2026)
- CFPB: Explore interest rates (accessed October 29, 2026)
- CFPB: What is a debt-to-income ratio? (accessed October 29, 2026)
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