Allen Markel, REALTOR® · Texas Premier Realty

Buying

15 vs. 30 years

The payment and total interest each way, and what the 15-year payment would buy on a 30-year clock.

Today's 30-year average: 7.40% (Freddie Mac survey via FRED, week of Oct 8, 2026). Edit to your lender's quote.

Assumed about 0.6 under the 30-year — the usual spread. Edit to your quote.

The 15-year saves

$322,825 in interest

30-year payment (P&I at 7.4%)
$2,493
15-year payment (P&I at 6.78%)
$3,192
More each month on the 15
$699/mo
Total interest, 30-year
$537,324
Total interest, 15-year
$214,500

Same $360,000 loan. The 15-year costs $699 more a month and is paid off 15 years sooner. Spent on a 30-year loan instead, that same $3,192 payment carries a $512,189 home at 10% down.

What the 15-year payment buys on a 30-year clock.

We’re not a lender. Principal & interest only — taxes, insurance and any PMI ride on top of both. Lenders qualify you on the payment, so the 15-year may approve a smaller loan; an extra-principal habit on a 30-year (see Early payoff) keeps the flexibility. A lender will price both for you — we’ll introduce you below.

Talk to a lender

These are the lenders Allen works with. For any lender you’d like to talk to, tap Make introduction — we’ll make the introduction for you.

Allen Markel is a licensed Texas REALTOR®, not a mortgage lender or loan originator. He does not quote rates or terms and does not decide whether you qualify — only a lender can do that. Introductions are a courtesy; you choose who to work with.

Numbers raising questions? Walk through them with a person.

Schedule time with Allen

Questions about Fifteen Vs Thirty

What it does

  • What does the 15 vs 30 year calculator show?

    It compares the monthly payment and the total interest on a 15-year and a 30-year loan for the same amount. It also shows how much more you pay each month on the 15-year, and what that same payment would carry on a 30-year loan. It makes the tradeoff between payment and interest easy to see.

The inputs

  • How is the 15-year rate chosen?

    The page assumes the 15-year rate is about 0.6 under the 30-year rate, which it calls the usual spread. You can edit it to match your actual quotes. Since the interest savings depend on this gap, using your lender's real numbers gives a better comparison.

  • What do I enter for the down payment?

    Enter the down payment as a percent of the home price. It sets the loan amount that both terms are compared on. A larger down payment lowers the loan and both payments, so try a few amounts to see the effect.

Reading the result

  • What does the 15-year saves figure mean?

    It is the total interest paid on the 30-year loan minus the total interest on the 15-year loan, over the life of each. It shows the long-run savings of paying the loan off sooner. It does not account for what you might earn by using the monthly difference elsewhere.

  • What does what the 15-year payment would buy on a 30-year clock mean?

    It shows the home price you could afford on a 30-year loan if you spent the same monthly payment as the 15-year. It highlights that the 15-year payment is high relative to the price. It helps if you are weighing a larger home with a longer term against a smaller one paid off faster.

  • Is the 15-year loan always better because it saves interest?

    Not necessarily. It saves interest and pays off sooner, but the higher payment takes more room from your budget and may reduce the loan a lender approves, since lenders qualify you on the payment. Whether it fits depends on your goals, so talk to us to find the right option for your circumstances.

Limits

  • Does the calculator include taxes and insurance?

    No. The page says it shows principal and interest only, and that taxes, insurance and any mortgage insurance come in addition to both. Add those from the other calculators, such as What can I afford, to see the full monthly cost.

  • Can I get the flexibility of a 15-year with a 30-year loan?

    The page suggests an extra-principal habit on a 30-year loan keeps flexibility, and points to the Early payoff calculator. You can choose to pay extra when you can and fall back to the lower required payment when you need it. A lender can confirm whether your loan has any limits on extra payments.

Next steps

  • How do I decide between a 15-year and a 30-year loan?

    Look at the payment each way, how comfortably you could carry the higher one, and your goals for paying off the home. Then have a lender price both. The calculator gives the tradeoff and a lender gives real terms, so talk to us and to a lender before settling on a term.

  • Where can I see homes that match the 15-year payment on a 30-year loan?

    The page links to live listings under the price that payment would carry on a 30-year loan, across our six counties. That gives a quick look at what the payment could buy. Treat it as a starting point and check it with a lender.

Using the tool

  • Why does a 15-year loan have a lower rate?

    Lenders generally price shorter loans at lower rates because they carry less time risk, so the calculator assumes the 15-year rate sits below the 30-year, and you can edit it to your quote. The payment is higher because the balance is repaid faster. A loan originator can price both for you.

  • Can I qualify for less with a 15-year loan?

    Possibly. Lenders qualify you on the payment, and a 15-year payment is higher, so it may support a smaller loan. The page suggests an extra-principal habit on a 30-year loan to keep flexibility. A loan originator can show how each option affects your approval.

See all questions