Mortgage Example
$300,000 Mortgage — 15-Year vs 30-Year Comparison
Compare monthly payments and total interest for a $300k mortgage on 15-year vs 30-year terms.
Scenario
$300,000 mortgage at 6.5% APR — compare 15 vs 30 year.
Inputs
Loan Amount$300,000
Rate6.5%
Term Options15 or 30 years
Results
15-Year Payment$2,613
30-Year Payment$1,896
15-Year Total Interest$170,280
30-Year Total Interest$382,560
Interest Saved (15yr)$212,280
Explanation
The 15-year mortgage costs $717 more per month but saves $212k in interest. If you can afford the higher payment, the 15-year is almost always the better financial choice — especially if your tax bracket means less benefit from the mortgage interest deduction.
Key Takeaways
- The $717 difference invested in index funds over 15 years could grow to ~$200k+.
- Many lenders offer lower rates on 15-year mortgages (0.5–0.75% lower).