A 15-year mortgage saves a lot of interest but has a much higher monthly payment. Most first-time buyers choose a 30-year loan for the lower payment and the flexibility it gives.
15-year vs. 30-year mortgage calculator
Freddie Mac averages on October 8, 2026: 7.40% (30-year) and 6.73% (15-year). Edit the rates to match your quotes.
Estimates for education only. Rates and costs vary; confirm with a licensed lender.
Why the 30-year is usually the safer choice for first-time buyers
- Lower payment: easier to qualify for, and it leaves room in your budget.
- Flexibility: you can still pay extra each month and pay it off early, with no penalty on most loans.
- Cushion: if money gets tight, you only owe the lower payment.
When a 15-year makes sense
- The higher payment still keeps your housing costs under about 28% of gross income.
- You already have a solid emergency fund and retirement savings.
- You want to own your home outright by a specific date.
A middle path
Take the 30-year loan and pay extra toward principal when you can. You won’t get the lower 15-year rate, but you keep the option to pay less if you need to.
Want the full picture? Module 3 shows the full monthly cost, including taxes, insurance and PMI. See the HomeLooker course.
Educational content only, not financial advice. Rates quoted are the Freddie Mac weekly average as of October 8, 2026; confirm current figures with a licensed lender.
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