Compare total interest, monthly payment, and equity build between 15-year and 30-year fixed mortgages.
15-year monthly
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30-year monthly
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15-year total interest
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30-year total interest
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Total interest saved (15 vs 30)
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The tradeoffs
15-year: higher monthly payment (~50% more) but you save ~60% of total interest. You own free and clear in 15 years.
30-year: lower monthly payment lets you buy more house or invest the difference. Total interest is dramatically higher.
The classic argument for 30-year: “invest the difference” in S&P 500. Works only if (1) you actually invest the difference, (2) returns exceed your mortgage rate, (3) you stay disciplined for 30 years.
The classic argument for 15-year: guaranteed forced savings, no rate-arbitrage risk, peace of mind, no debt at 50.