Same loan, different clock
Shortening the term does not change the amount borrowed. It packs repayment into fewer months, so each payment is larger and the balance falls faster.
Even when the 15-year rate is the same as the 30-year rate, interest falls because you pay the balance down sooner. A real 15-year quote is often a different rate. Type both rates into the compare tool.
Payment room matters
A payment that only works if nothing else goes wrong is a fragile plan. The affordability calculator's 28/36 guideline is a teaching limit, not a promise that the higher payment is safe.
If you want a 30-year required payment but plan to pay extra, use the payoff calculator. Extra principal is optional. A 15-year payment is required.
| Term | Monthly principal and interest | Total interest |
|---|---|---|
| 15 years | Higher | Lower |
| 30 years | Lower | Higher |
Calculators
Related guides
Sources
Common questions
Is a 15-year loan always cheaper?
It usually costs less interest if you complete it. It costs more each month. A higher rate on the shorter term can narrow the gap.
What about a 20-year term?
The payment calculator includes 20 years so you can sit between the two.