15 vs 20 Year Mortgage
Side-by-side payment and total-interest comparison, plus the case for each. Adjust the inputs to model your own loan.
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- Principal & Interest
- $2,275
- Property Taxes
- $450
- Home Insurance
- $100
15 vs 20 year, side by side
$360,000 borrowed, principal and interest only. Rates differ by term because lenders price them differently — using one rate for both would flatter the shorter loan.
| Term | Rate | Monthly P&I | Total interest |
|---|---|---|---|
| 15 years | 5.75% | $2,989.48 | $178,106 |
| 20 years | 6.15% | $2,610.40 | $266,496 |
| Difference | — | +$379.07/mo | −$88,391 |
Put plainly: about $379 more each month buys you roughly $88,391 in avoided interest and 5 fewer years of payments.
Which one is right for you
The case for 15 years
Five fewer years of interest, and 15-year loans typically carry the lowest rate on the board. If you can absorb the payment, this is usually the lowest total cost of any fixed-rate option.
The case for 20 years
The 20-year payment is meaningfully easier while still clearing the debt well before a 30-year would. It is the sensible compromise when the 15-year payment would leave no room for saving or for the ordinary surprises of owning a house.
One rule of thumb worth more than the arithmetic: if choosing the 15-year would stop you funding an emergency reserve or capturing a full employer retirement match, take the 20-year and overpay when you can. Liquidity you have is worth more than interest you might avoid.
Other term comparisons
Related Calculators
Frequently Asked Questions
- Cheaper, not automatically better. On a $360,000 loan the 15-year costs about $379 more per month but saves roughly $88,391 in interest over its life. Whether that trade is right depends on whether the higher payment is comfortable — not just affordable — once you have also funded an emergency reserve and any retirement match.