Purchase · 4 min read
Should I choose a 15-year or a 30-year mortgage?
July 24, 2026 · Written by Bill Egan, NMLS 7342
Short answer
A 30-year loan has a lower monthly payment and more room if a year goes badly. A 15-year loan has a higher payment, usually a lower rate, and a lot less interest over the life of the loan. Pick the payment you can make in a slow year. If you want the 15-year result, you can pay extra principal on a 30-year without being trapped by the higher required payment.
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Why this comes up
You want to save interest but you are afraid a 15-year payment will break a slow year. The 30-year feels safer and more expensive at the same time.
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Where this goes wrong
A 15-year is chosen on overtime income. Overtime drops, the payment does not, and the loan that closed is now the problem. Or a 30-year is chosen without comparing interest cost, and a refinance later cannot fix years already paid in interest.
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What we do about it
We put both payments on the table with taxes and insurance, using the rates you were quoted. We will not talk you into a 15-year you cannot make if overtime disappears. If you want the 15-year result with a safety net, we show extra principal on a 30-year — most conventional, FHA, and VA loans have no prepayment penalty.
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How to get ready
Run both on the loan comparison calculator. Use the payment you can make in a bad year, not the one that looks good in January. A national 15-year average is usually lower than the 30-year average. That is a survey, not your quote. Type in the rates you were actually given.