15-Year vs 30-Year Mortgage 2026

Live rates from Federal Reserve: 15-year at 6.68% · 30-year at 7.32%

Updated 2026-10-22 · FRED MORTGAGE15US/MORTGAGE30US

Example: $400,000 loan at today's rates

15-Year @ 6.68%

  • Monthly payment: $3,524
  • Total interest: $234,344
  • Total paid: $634,344

30-Year @ 7.32%

  • Monthly payment: $2,748
  • Total interest: $589,180
  • Total paid: $989,180

15-year saves $354,836 in interest, costs $776/month more

Side-by-side comparison

Feature15-Year30-Year
Current rate (FRED)6.68%7.32%
Rate trend (1 wk)↓ 0.03 pp↓ 0.08 pp
Monthly payment ($400k)$3,524$2,748
Total interest paid$234,344$589,180
Equity at year 5~25%~8%
Tax deduction (interest)SmallerLarger (longer)
Cash flow flexibilityLowerHigher
Best forHigh income, debt-averse, near retirementCash flow priority, investing the difference, mobile careers

When 15-year wins

  • You can comfortably afford the higher monthly payment without sacrificing other goals
  • You're less than 15 years from retirement and want to be mortgage-free
  • You hate paying interest more than you love optionality
  • You're a disciplined saver, the forced equity build is a feature, not a bug

When 30-year wins

  • You expect to invest the payment difference at a higher return than the mortgage rate
  • Cash flow uncertainty (variable income, kids' expenses, business)
  • You plan to move in 5-10 years (the early years are mostly interest either way)
  • You qualify for a much larger loan with the lower payment

Frequently Asked Questions

Should I get a 15-year or 30-year mortgage in 2026?

It depends on cash flow vs lifetime cost. A 15-year mortgage at 6.68% saves you about $354,836 in total interest on a $400k loan compared to a 30-year at 7.32%, but raises the monthly payment by about $776. Pick 15-year if you can comfortably absorb the higher monthly payment; pick 30-year if you need lower payments or plan to invest the difference.

How much higher are 15-year mortgage payments?

On a $400,000 loan at today's rates, a 15-year mortgage costs about $3,524/month vs $2,748/month for a 30-year, roughly $776 more per month. The exact difference depends on the rate spread (currently 0.64 percentage points).

Why are 15-year mortgage rates lower than 30-year?

Lenders charge less for shorter loans because they reduce both interest-rate risk (rates could rise during the loan) and default risk (less time for borrower circumstances to deteriorate). The rate spread between 15 and 30-year fixed mortgages typically runs 50-100 basis points.

Can I pay extra on a 30-year mortgage to mimic a 15-year?

Yes, adding extra principal payments to a 30-year mortgage can replicate (or beat) a 15-year payoff. Advantage: you keep flexibility to skip the extra payment in lean months. Disadvantage: 30-year rates are higher, so even with aggressive prepayment you pay slightly more interest than a true 15-year. Use our extra payment calculator to model the exact tradeoff.

Does a 15-year mortgage build equity faster?

Yes, dramatically. By year 5, a 15-year borrower has paid down about 25% of principal vs about 8% on a 30-year. Equity reaches 50% at year 9 on a 15-year vs year 19 on a 30-year. This matters if you sell early, more proceeds.

When does a 30-year mortgage make more financial sense?

A 30-year is better when: (1) you can invest the monthly payment difference at a higher return than the mortgage rate; (2) you need the cash flow flexibility for kids, business, or emergencies; (3) you expect significant income growth that will let you prepay later; (4) you plan to move within 7-10 years (early years of either loan are mostly interest, so the term matters less if you sell).

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