A 15-year mortgage has a lower rate and builds equity fast, saving huge interest — but the monthly payment is much higher. A 30-year mortgage has a higher rate and total interest, but a far lower, more flexible payment. Choose 15-year if you can comfortably afford the payment and want to be debt-free sooner; choose 30-year for lower payments, flexibility, and cash flow.
On a $600,000 loan at early-September 2026 rates (about 6.7% for 30-year, 6.0% for 15-year), the trade-off looks like this:
| 30-Year @ 6.7% | 15-Year @ 6.0% | |
|---|---|---|
| Monthly principal & interest | ~$3,870 | ~$5,065 |
| Total interest paid | ~$793,000 | ~$311,000 |
| Payoff | 30 years | 15 years |
The 15-year costs about $1,200 more per month but saves roughly $480,000 in interest and frees you 15 years sooner. (Figures are illustrative — run your own with our payment calculator.)
When a 15-year wins
- You can comfortably afford the higher payment with room to spare.
- You want to own free-and-clear sooner — near retirement, or to stop paying interest.
- You value guaranteed, risk-free "return" from interest saved.
When a 30-year wins
- You want the lowest required payment and maximum cash-flow flexibility.
- You’d rather invest the difference, keep reserves, or buy more home.
- Your income varies — a lower required payment is safer. You can still pay extra voluntarily to mimic a 15-year without being locked into it.
Bottom line: Many California buyers take a 30-year for the flexible payment and simply pay extra when they can — getting most of the interest savings without the mandatory higher payment. A broker can price both so you decide with real numbers.
Frequently asked questions
Is a 15-year or 30-year mortgage better?
A 15-year saves far more interest and builds equity faster but has a much higher payment; a 30-year is lower and more flexible. If you can easily afford the 15-year payment, it wins financially; otherwise the 30-year’s flexibility is safer.
Do 15-year mortgages have lower rates?
Yes, usually about 0.5–0.75% lower than 30-year rates, because the lender is repaid sooner and takes less risk.
Can I pay off a 30-year mortgage early?
Yes. Most mortgages have no prepayment penalty, so you can pay extra toward principal anytime and shorten the term — getting much of the 15-year benefit while keeping the low required payment.
How much more is a 15-year payment?
Typically 30–35% higher per month than a 30-year on the same loan amount, even with the lower rate, because you’re repaying principal in half the time.
Save Financial, Inc. — NMLS #377740, DRE #01875766. Equal Housing Opportunity. Figures are illustrative for 2026 and not an offer of credit or a guarantee of rates or approval.