The two most common U.S. mortgages are the 30-year and the 15-year fixed. The right choice depends on whether you care more about a lower monthly payment or a lower total cost.
The comparison at today's rates
Take the national median existing-home price of $429,100 (NAR, August 2026) with 20% down, leaving a loan of $343,280. Using Freddie Mac's September 24, 2026 averages — 7.03% for 30 years and 6.42% for 15 years:
| 30-year at 7.03% | 15-year at 6.42% | |
|---|---|---|
| Monthly principal & interest | $2,291 | $2,975 |
| Total interest paid | $481,398 | $192,267 |
| Total of all payments | $824,678 | $535,547 |
The 15-year loan costs $684 more each month, but saves about $289,000 in interest over the life of the loan — and you own the home outright in half the time.
Who a 30-year mortgage suits
- First-time buyers who need the lowest possible payment.
- Households that want flexibility to save, invest or handle irregular income.
- Buyers who plan to make extra payments when they can — most loans allow this without penalty, but check your terms.
Who a 15-year mortgage suits
- Buyers with stable income who can comfortably afford the higher payment.
- People who want to be mortgage-free before retirement.
- Anyone focused on minimising total interest.
A middle path
Some buyers take a 30-year loan for safety and pay extra each month as if it were shorter. You keep the lower required payment but still cut interest — though you will usually pay a slightly higher rate than on a true 15-year loan.
Run your own numbers in our mortgage calculator — switch the term between 15 and 30 years to compare.
Figures are principal and interest only, excluding taxes, insurance, HOA and PMI. Rates: Freddie Mac PMMS, September 24, 2026.