15yr vs 30yr, Fixed vs ARM — Compare and Choose the Best Mortgage
Side-by-side comparison of two mortgage options. See monthly payment, total cost, and break-even on closing costs.
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15yr saves ~50% in interest vs 30yr but requires ~40% higher monthly payment Compare APR, not just rate—APR includes fees ARM can save if you sell/refi before rate resets Break-even: closing cost difference ÷ monthly savings = months to recoup
Ready to run the numbers?
Why: Choosing the right mortgage can save tens of thousands. 15yr saves ~50% interest vs 30yr but requires ~40% higher payment. ARM often runs 0.75% below fixed initially. Compare APR (not just rate) and factor in closing costs—break-even is usually 2–5 years.
How: Enter two mortgage options: loan amount, rate, term, and closing costs for each. Results show monthly payment, total cost, monthly difference, and break-even months. Use to compare 15yr vs 30yr, fixed vs ARM, or different lenders.
Run the calculator when you are ready.
📋 Quick Examples — Click to Load
15yr 5.8%
30yr 6.5%
Monthly Payment
Total Cost
Cost Breakdown
Break-Even
For educational purposes only — not financial advice. Consult a qualified advisor before making decisions.
💡 Money Facts
15yr vs 30yr on $300K can save ~$116K
— Freddie Mac
ARM often 0.5–0.75% below fixed initially
— CFPB
APR includes origination, points, some fees
— Bankrate
Get Loan Estimates from 3+ lenders to compare
— CFPB
Refi break-even typically 2–5 years
— LendingTree
Low rate + high fees may cost more long-term
— Bankrate
Compare mortgages side-by-side: 15yr vs 30yr, fixed vs ARM, or different lenders. 15yr typically saves ~$116K vs 30yr on $300K. ARM often runs 0.75% below fixed initially. Compare APR (not just rate) and factor in closing costs. Refi break-even is usually 2–5 years.
Sources: Freddie Mac, CFPB, Bankrate, LendingTree.
Key Takeaways
- • 15yr saves ~50% in interest vs 30yr but requires ~40% higher monthly payment
- • Compare APR, not just rate—APR includes fees
- • ARM can save if you sell/refi before rate resets
- • Break-even: closing cost difference ÷ monthly savings = months to recoup
Did You Know?
How to Compare Mortgages
Monthly vs Total
Lower monthly doesn't mean lower total cost. 30yr has lower payment but higher total interest. 15yr has higher payment but much less interest over time.
APR vs Rate
APR reflects true cost including fees. Use APR to compare lenders. Rate alone can be misleading.
Break-Even
If one option has higher fees but lower rate: break-even = fee difference ÷ monthly savings. Stay longer than break-even to benefit.
Expert Tips
15yr vs 30yr Comparison
| Term | Monthly | Total Interest |
|---|---|---|
| 15yr | Higher | ~50% less |
| 30yr | Lower | ~2x more |
Frequently Asked Questions
Should I choose 15yr or 30yr mortgage?
15yr: higher monthly payment but ~50% less total interest and faster equity. 30yr: lower payment, more cash flow. Choose 15yr if you can afford ~40% higher payment; 30yr for flexibility or if you invest the difference.
Fixed vs ARM—how do they compare?
Fixed locks your rate for the full term. ARM starts lower (often 0.5–0.75% below fixed) but adjusts after 5–10 years. ARM makes sense if you plan to sell or refinance before the rate resets.
How do I compare lenders?
Compare APR (includes fees), not just rate. Get Loan Estimates from 3+ lenders. Factor in closing costs vs rate—low rate + high fees may cost more than slightly higher rate + no fees over time.
What is APR vs interest rate?
Interest rate is the cost of borrowing. APR includes fees (origination, points, etc.) and reflects true cost. APR is usually 0.25–0.5% higher than interest rate. Use APR to compare lenders.
How do I compare closing costs?
Get Loan Estimates from each lender. Compare Section A (origination), Section B (services you can't shop), and total closing costs. Calculate break-even: fees ÷ monthly savings = months to recoup.
When does 15yr make sense?
15yr makes sense if you can afford the higher payment and want to pay off faster. Typical savings: 15yr vs 30yr on $300K can save ~$116K in interest. Run the numbers for your scenario.
Key Statistics
Official Data Sources
⚠️ Disclaimer: This calculator provides estimates for educational purposes. Actual terms vary by lender. Not financial advice. Consult a mortgage professional.
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