Where do these numbers come from?
- Freddie MacPrimary Mortgage Market Survey: 30-yr fixed 7.32%, 15-yr 6.68%week of Oct 22, 2026
- U.S. Census BureauACS 5-year table B25103, property taxes paid by ZIP2020–2024 estimates
- U.S. Census BureauACS 5-year table B25077, median home value2020–2024 estimates
- CFPBWhen PMI must be removed (Homeowners Protection Act, 78% LTV)accessed Oct 23, 2026
- Insurance Information InstituteAverage homeowners (HO-3) premiumaccessed Oct 23, 2026
Checked Oct 23, 2026. $320,000 borrowed at 6.5% for 30 years: this calculator gives $2,022.62 a month in principal and interest, and =PMT(6.5%/12; 360; -320000) in LibreOffice Calc (the same PMT function as Excel and Google Sheets) returns 2,022.62. At this week's Freddie Mac average of 7.32% both give $2,198.18.
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$320,000 loan, same rate
| Term | Rate | Monthly P&I | Total interest |
|---|---|---|---|
| 30 years | 6.5% | $2,022.62 | $408,142 |
| 15 years | 6.5% | $2,787.54 | $181,758 |
The 15-year payment is $765 a month higher, and you save $226,385 in interest. In practice 15-year loans usually carry a lower rate than 30-year loans, which widens the gap. At an illustrative 5.75% on the 15-year, the payment is $2,657.31 and total interest $158,316, saving $249,826 versus the 30-year at 6.5%.
By loan amount (6.5%, both terms)
| Loan | 30-yr payment | 15-yr payment | Interest saved |
|---|---|---|---|
| $200,000 | $1,264 | $1,742 | $141,490 |
| $250,000 | $1,580 | $2,178 | $176,863 |
| $300,000 | $1,896 | $2,613 | $212,235 |
| $400,000 | $2,528 | $3,484 | $282,981 |
| $500,000 | $3,160 | $4,356 | $353,726 |
A middle path: 30-year with extra payments
A 30-year loan with extra principal payments keeps the lower required payment while cutting interest. On a $320,000 loan at 6.5%, paying an extra $200 a month saves about $105,429 in interest and pays the loan off in about 6 years 7 months. That flexibility matters if income is uneven: you can stop the extra payments in a tight month, which you can’t do with a 15-year payment. The trade-off is discipline, and a 30-year rate is usually higher.
Who tends to choose which
A 15-year loan suits buyers whose budget comfortably covers the higher payment and who want to own the home outright sooner. A 30-year loan suits buyers who want a lower required payment, need to qualify on debt-to-income ratios, or would rather invest the difference. Rates on this page are illustrative; get current quotes for both terms from lenders.
Rates in the tables are a range for comparison, not current market quotes. Payments are principal and interest only unless stated.
Related
Frequently asked questions
Is a 15-year or 30-year mortgage better?
A 15-year saves far more interest; a 30-year has a lower, more flexible payment. The better choice depends on whether the higher payment fits comfortably.
How much more is a 15-year mortgage payment?
On $320,000 at 6.5%, about $765 a month more ($2,788 vs $2,023).
How much interest does a 15-year mortgage save?
About $226,385 on $320,000 at the same 6.5% rate.
Are 15-year mortgage rates lower?
Usually, yes. Lenders typically price 15-year loans below 30-year loans.