15-Year Mortgage Calculator

Key Considerations

• On the $280,000 balance, 7.40% over 30 years costs about $1,939 per month in P&I, while 6.71% over 15 years costs about $2,472 -- a $533 monthly step-up for the shorter term.
• Total interest drops from about $417,900 on the 30-year path to about $164,900 on the 15-year path, a savings of roughly $253,000 over the life of the loan.
• After five years, the 15-year loan at 6.71% pays down about $64,400 in principal versus roughly $15,300 on the 30-year loan at 7.40% -- a $49,000 equity gap if you need to sell or refinance.
• Before you choose the 15-year payment, confirm you can still fund 401(k) matches and keep three to six months of expenses in cash after closing.
• If the $533 payment jump feels tight, take the 30-year loan at 7.40% and add voluntary principal prepayments when bonuses arrive -- you keep flexibility without locking into the higher required payment.

Quick Numbers

How This Compares

Frequently Asked Questions

When does a 15-year mortgage make financial sense?

It works when the $2,472 payment at 6.71% still keeps housing near 28% of gross income -- about $105,900 per year -- and you have stable W-2 earnings with limited car or student debt. The 30-year option at 7.40% needs only about $83,100 in income for the $1,939 P&I. The $253,041 interest savings matter most if you stay at least seven to ten years.

How much of a rate discount do 15-year mortgages typically offer?

Freddie Mac's PMMS for the week of October 15, 2026 shows 6.71% on 15-year fixed loans versus 7.40% on 30-year fixed -- a 0.69-point spread. Lenders often price 15-year notes 0.50% to 0.75% below 30-year notes because the shorter maturity reduces their duration risk. Compare APRs, not rate alone, because closing costs differ by lender.

Can I switch from a 30-year to a 15-year mortgage later?

You may refinance into a 15-year loan anytime, but expect closing costs of 2% to 3% on the remaining balance. Refinancing pays off when rates fall or your income rises enough to absorb the higher payment. Keeping a 30-year note and prepaying principal mimics much of the savings while preserving lower mandatory payments during job transitions.

How quickly does a 15-year mortgage build equity?

After five years on the $280,000 loan, principal paydown near $64,400 at 6.71% over 15 years beats the roughly $15,300 paid down on a 30-year loan at 7.40%. By year ten on the 15-year schedule you own well over half the home outright. That equity cushion helps if you need a HELOC, downsize, or absorb a job move.