15-Year vs 30-Year Mortgage: Which Is Better at Today's Rates?
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A 15-year mortgage costs far less interest but has a much higher monthly payment than a 30-year mortgage. In Freddie Mac's survey for the week of Oct. 29, 2026, the 15-year fixed averaged 6.60% and the 30-year fixed averaged 7.24%. On a $400,000 example loan, that is about $780 more a month for the 15-year, but about $350,000 less interest over the life of the loan.
What is the difference between a 15-year and a 30-year mortgage?
Both are fixed-rate loans. Your rate and your principal-and-interest payment stay the same for the whole loan. The difference is how long you take to pay it back.
15-year: you pay the loan off in 180 monthly payments. Each payment is bigger, but more of it goes to the loan balance.
30-year: you pay it off in 360 monthly payments. Each payment is smaller, but you pay interest for twice as long.
15-year rates are usually lower than 30-year rates. Freddie Mac's Primary Mortgage Market Survey (checked Nov. 4, 2026) showed a gap of 0.64 percentage points for the week of Oct. 29, 2026.
How much more is the monthly payment on a 15-year mortgage?
Here is an EXAMPLE on a $400,000 loan at Freddie Mac's averages for the week of Oct. 29, 2026. It shows principal and interest only. Taxes, insurance and mortgage insurance are not included.
Example: $400,000 loan | 30-year fixed at 7.24% | 15-year fixed at 6.60% |
|---|---|---|
Monthly principal and interest | About $2,726 | About $3,506 |
Number of payments | 360 | 180 |
Total interest over the loan | About $581,357 | About $231,162 |
Loan balance left after 5 years | About $377,476 | About $307,429 |
Example math only, using Freddie Mac PMMS averages for the week of Oct. 29, 2026 (checked Nov. 4, 2026). Not a quote or an offer. Your rate will depend on your credit, down payment and lender.
The 15-year payment is about $780 higher each month in this example. In return, you would pay about $350,195 less interest and own the home outright in half the time.
Is a 15-year mortgage harder to qualify for?
It can be. Lenders look at your debt-to-income ratio (DTI). That is your total monthly debt payments, including the new house payment, divided by your monthly income before taxes.
Fannie Mae's Selling Guide, B3-6-02 (checked Nov. 4, 2026) says the maximum DTI is 50% for loans run through its automated system, Desktop Underwriter. For loans underwritten by hand, the limit is 36%, or up to 45% if you meet credit score and savings rules.
A bigger payment pushes your DTI up. So the same income may qualify for a smaller loan on a 15-year than on a 30-year.
Which saves more: a 15-year loan or paying extra on a 30-year?
You can pay a 30-year loan off early by paying extra. In our example, if you paid the 15-year amount of about $3,506 every month on the 30-year loan at 7.24%, you would pay it off in about 16 years and pay about $279,448 in interest.
That is still more interest than the 15-year loan (about $231,162), because the 30-year rate is higher. But it gives you a choice. If money gets tight one month, you can drop back to the regular 30-year payment.
Before you plan on this, ask your lender if the loan has any prepayment rules. Then check that extra money goes to principal.
How have 15-year and 30-year rates moved this year?
Rates have risen over the past year. Freddie Mac's survey for the week of Oct. 29, 2026 (checked Nov. 4, 2026) shows:
Loan term | Week of Oct. 29, 2026 | A year earlier |
|---|---|---|
30-year fixed | 7.24% | 6.17% |
15-year fixed | 6.60% | 5.41% |
Table source: Freddie Mac PMMS, checked Nov. 4, 2026.
The same release says the 30-year average fell from 7.32% the week before. Freddie Mac publishes a new survey every Thursday, so check the latest numbers before you decide. Nobody can promise where rates will go next.
What else should I compare besides the rate?
The rate is only one part of the cost. When you get offers, compare:
Points and lender fees. A lower rate may come with points you pay up front.
The APR. It folds many loan costs into one yearly number, so it helps you compare offers of the same term.
Cash to close. A Loan Estimate shows how much you need at closing for each option.
Ask each lender for a Loan Estimate on the same day, for the same loan amount and term, so the numbers line up.
When does a 30-year mortgage make more sense?
A 30-year loan may fit better when:
You want a lower required payment. The smaller payment leaves room for savings, repairs and new-home costs like blinds and furniture.
Your income may change. A lower required payment gives you breathing room.
You are close to your DTI limit. The 30-year may be the only way to qualify for the home you want.
When does a 15-year mortgage make more sense?
A 15-year loan may fit better when:
You can comfortably afford the higher payment and still keep an emergency fund.
You want the home paid off sooner, for example before retirement.
You want to pay the least total interest, and the rate gap is wide enough to matter.
What this means for new-construction buyers
New homes often take months to build, and your loan terms can matter as much as your price. Here is what to think about:
Pick your term before you lock. A rate lock is for a specific loan. If you switch terms later, ask your lender whether your lock carries over.
Ask how builder incentives work on each term. Some offers, like rate buydowns, may be built around one loan type. Ask for the numbers in writing on both terms. Call 561-704-0091 for today's incentives on any community.
Plan for your full payment. Budget for property taxes, homeowners insurance and any mortgage insurance on top of the payments shown above.
Run both on your Loan Estimate. Ask your lender for a Loan Estimate on each term so you can compare the real costs side by side.
Common Questions
Is a 15-year or 30-year mortgage better?
It depends on your budget. A 15-year mortgage costs much less interest but has a higher monthly payment. A 30-year mortgage has a lower payment but costs more interest over time.
How much lower are 15-year mortgage rates?
In Freddie Mac's survey for the week of Oct. 29, 2026, the 15-year fixed averaged 6.60% and the 30-year fixed averaged 7.24%. That is a gap of 0.64 percentage points.
How much more is a 15-year mortgage payment?
On a \$400,000 example loan at those averages, principal and interest is about \$3,506 a month on a 15-year and about \$2,726 on a 30-year. That is about \$780 more a month.
Can I pay off a 30-year mortgage in 15 years?
You can pay extra to pay it off sooner. In our example, paying about \$3,506 a month on the 30-year loan at 7.24% pays it off in about 16 years, but with more interest than a true 15-year loan.
Is it harder to qualify for a 15-year mortgage?
It can be, because the higher payment raises your debt-to-income ratio. Fannie Mae's Selling Guide caps DTI at 50% for loans run through Desktop Underwriter.
Does a 15-year mortgage build equity faster?
Yes. In our \$400,000 example, the balance after five years is about \$307,429 on the 15-year and about \$377,476 on the 30-year. More of each 15-year payment goes to the loan balance.
Ready to take the next step?
Call 561-704-0091 to talk with a National House Search specialist, or Schedule a visit.
Related reading: Debt-to-income ratio for a mortgage · When to lock your mortgage rate · How to buy down your interest rate
This is general information, not financial, tax or legal advice. Figures checked November 4, 2026.