The mortgage term has a huge impact on both monthly payment and lifetime interest. Shorter loans cost more per month but far less in total.
The numbers
On a $350,000 loan, a 30-year at 6.5% costs about $2,212 per month and roughly $446,000 in interest. A 15-year at a rate near 5.75% costs about $2,906 per month and roughly $173,000 in interest. The shorter loan saves nearly $273,000 but requires about $700 more monthly.
Flexibility has value
A 30-year loan with extra payments gives you the option to pay it off faster while keeping the lower required payment as a safety net. If your income is uneven or you want to invest the difference, the longer term offers breathing room.
How to choose
Choose a 15-year if the payment fits comfortably, you are on track for retirement savings and you value being debt-free. Choose a 30-year if you need cash flow flexibility or can earn more by investing the savings than the mortgage rate costs.
Try the numbers
Use our Amortization Schedule Calculator to see this in practice. With its default example (Loan amount: $300,000; Interest rate: 6.5%; Term (years): 30), it shows monthly payment: $1,896. Adjust the inputs to match your situation.
Key takeaways
- A 15-year mortgage costs far less interest but has higher payments.
- A 30-year with voluntary extra payments gives flexibility.
- Do not sacrifice retirement saving to shorten your mortgage.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.