A shorter term pays off faster and usually carries a lower note rate, so both effects compound: less time and a lower rate mean substantially less total interest paid over the life of the loan. The tradeoff is a higher required monthly payment, since the same loan amount is repaid over half the time. The table below shows both terms across nine home prices, all at 20% down and national-average property tax and insurance, so the tradeoff scales the same way at every price point.
| Home price | 30-yr payment | 15-yr payment | Monthly difference | Lifetime interest saved (15-yr) |
|---|---|---|---|---|
| $200k | $1,497 | $1,803 | -$306 | $144,276 |
| $250k | $1,812 | $2,194 | -$383 | $180,345 |
| $300k | $2,126 | $2,585 | -$459 | $216,414 |
| $350k | $2,440 | $2,976 | -$536 | $252,483 |
| $400k | $2,755 | $3,367 | -$613 | $288,552 |
| $500k | $3,384 | $4,150 | -$766 | $360,690 |
| $600k | $4,013 | $4,932 | -$919 | $432,828 |
| $750k | $4,956 | $6,105 | -$1,149 | $541,035 |
| $1 million | $6,528 | $8,060 | -$1,531 | $721,380 |
Open the 30-year example Open the 15-year example
Source references: Tax Foundation: Property Taxes by State and County, 2026 Insurance.com: Average Homeowners Insurance Rates by State (2026)
Rate reference as of 10/8/2026. Educational software; no professional review claimed.