What credit score do I need to buy a home?

Most conventional loans require 620 minimum. FHA accepts 580 for 3.5% down. The best rates require 740+. Improving your score 20-40 points before applying can save tens of thousands in interest.

How much money do I need to buy a house?

Budget for down payment (3-20%), closing costs (2-5% of loan), and 3-6 months reserves. On a $350,000 home with 5% down: roughly $17,500 down plus $8,000-15,000 closing costs plus $10,000+ reserves.

How long does it take to buy a house?

From starting your search to closing: 3-6 months is typical. Pre-approval takes 1-3 days. Once under contract, closing takes 30-45 days.

Can I pay off a 30-year mortgage in 15 years?

Yes. By making extra principal payments equivalent to what you'd pay on a 15-year loan, you can pay off a 30-year mortgage in approximately 15 years. This approach gives you the flexibility of the lower required 30-year payment while allowing you to accelerate payoff when cash flow allows.

15 vs 30-Year Mortgage: A Complete Side-by-Side Comparison

📅 May 9, 2026⏱ 11 min read✍️ MortgageCalPro Editorial Team🔄 Reviewed May 2026

Choosing between a 15-year and 30-year mortgage is one of the most consequential decisions in the entire homebuying process. The difference in total interest paid can exceed $300,000 on a typical loan — but the 15-year option comes with a significantly higher monthly payment that can strain budgets and limit financial flexibility. Here's everything you need to make the right call for your situation. Use our Loan Comparison tool to model both options with your exact numbers.

The Numbers: A Direct Comparison

	30-Year Fixed	15-Year Fixed
Loan Amount	$350,000	$350,000
Interest Rate	6.82%	6.14%
Monthly Payment	$2,292	$2,986
Payment Difference	+$694/mo (higher for 15yr)	—
Total Interest Paid	$474,900	$187,500
Interest Savings vs 30yr	—	$287,400 saved
Total Cost	$824,900	$537,500
Equity After 5 Years	~$31,000	~$82,000
Loan Paid Off	2056	2041

Assumes $350,000 loan. Current avg rates May 2026. Use our Mortgage Calculator for your exact figures.

Why 15-Year Rates Are Lower

The 15-year fixed rate is typically 0.5–0.75% below the 30-year fixed rate. This is because shorter-term loans represent less risk to the lender — there's a shorter window during which the borrower could default or rates could change. That lower rate compounds the savings: you're paying less interest, for fewer years, at a lower rate.

The Case for a 30-Year Mortgage

The 30-year mortgage remains the most popular mortgage in America for good reasons:

Cash flow flexibility: The lower required payment gives you breathing room for emergencies, job changes, or other financial priorities without risking your home
Investment opportunity: The extra $694/month you're not paying toward a 15-year loan could be invested. At 7% historical market returns over 30 years, that $694/month grows to approximately $875,000 — more than the interest difference
Qualification: A lower required payment means you may qualify for a larger loan amount, enabling you to buy in a better location or larger home
Optionality: A 30-year mortgage with extra payments is functionally equivalent to a 15-year mortgage — with the option to pay less during tough times

The Case for a 15-Year Mortgage

Guaranteed return: The interest saved is a guaranteed, risk-free return equal to your mortgage rate (~6.14%). Most investors would be delighted with that risk-free.
Forced discipline: The higher payment creates forced savings via equity, unlike investing which requires discipline to maintain
True financial freedom: Owning your home outright at the end of 15 years — potentially before retirement — provides security no investment account can replicate
Lower total cost: You simply pay far less for the home over its lifetime
Build equity faster: Faster equity growth provides a financial cushion and more options (refinance, HELOC, downsizing)

The "30-Year With Extra Payments" Strategy

Many financial advisors recommend a hybrid approach: take the 30-year mortgage but make extra payments when possible, targeting the payoff speed of a 15-year loan. This gives you:

The lower required payment of a 30-year (insurance against tough times)
The payoff speed of a 15-year (when you make the extra payments)
Flexibility to dial back payments during financial stress

On a $350,000 loan at 6.82% (30-yr), paying an extra $694/month pays the loan off in approximately 16.5 years and saves about $270,000 in interest — nearly as good as the 15-year at a fraction of the commitment. Use our Extra Payment Calculator to model this for your loan.

The Right Choice Depends on Your Priorities

Choose 15-Year If...	Choose 30-Year If...
Your income is stable and predictable	You have variable income or job uncertainty
You can comfortably afford the higher payment	The higher payment would strain your budget
You prioritize guaranteed return on debt paydown	You want flexibility to invest the payment difference
You're within 15–20 years of retirement	You're early in your career with many earning years ahead
The discipline of higher payments appeals to you	You want maximum flexibility and will invest the difference

Breaking Down the Investment Argument

The math on investing the payment difference is compelling on paper — but requires discipline and consistent execution over 30 years. In practice, many people spend the payment difference rather than investing it. The 15-year mortgage creates forced savings that happen automatically.

Also worth noting: the investment return comparison changes significantly based on your mortgage rate. At current rates (6.82%), the "invest the difference" argument requires the market to return more than 6.82% after tax — which is plausible historically but not guaranteed. At lower rates (3–4%), the investment argument is much stronger.

How to Run the Numbers for Your Situation

Use our Mortgage Calculator to calculate both monthly payments at your loan amount and current rates
Use our Loan Comparison tool to see 15yr vs 30yr side by side with total interest
Honestly assess whether the 15-year payment fits your budget with comfort to spare
Consider the "30-year with extra payments" approach using our Extra Payment Calculator

Is a 15-year or 30-year mortgage better?

Neither is universally better. A 15-year saves substantially on interest and builds equity faster but requires a higher monthly payment. A 30-year provides cash flow flexibility but costs far more in total interest. The right choice depends on your income stability, other financial priorities, and discipline.

How much more interest do I pay on a 30-year mortgage?

On a $350,000 loan, a 30-year mortgage at current rates costs approximately $475,000 in total interest vs. $188,000 for a 15-year — a difference of about $287,000. However, the monthly payment difference is approximately $694/month.

Can I pay off a 30-year mortgage early?

Yes — by making extra principal payments. Even paying the difference between 30-year and 15-year monthly payments as extra principal gets you very close to 15-year payoff speed, with the flexibility to reduce payments during tough times. Use our Extra Payment Calculator to model this.