Loan Term Comparison Calculator

It depends. The 15-year saves enormous interest (about 56% less on a $400K loan at 7%) but raises monthly payment by 35%. Mathematically optimal answer: take the 30-year if you can invest the difference at a higher expected return than your mortgage rate. Practically: most people don't actually invest the difference, so the 15-year wins by forcing savings.

Dramatically faster. After 5 years on a $400K mortgage at 7%, the 15-year balance is around $314K (paid off $86K of principal), while the 30-year balance is around $377K (paid off only $23K). The 15-year builds equity nearly 4× faster early on.

Lenders charge less for shorter-term loans because their capital is at risk for less time and inflation has less effect. The Freddie Mac PMMS spread between 30-year and 15-year mortgage rates typically runs 0.5–0.75 percentage points — a meaningful additional savings on top of the term-shortening effect.

Maybe — if (a) the new rate is lower than your current rate (refi rate plus the term reduction stacks savings), (b) you'll stay in the home long enough to recoup closing costs (typically 24–36 months), and (c) the higher monthly payment fits your budget without constraining other goals. Use a separate refinance calculator to find the break-even point.

Almost. Adding extra principal monthly to a 30-year matches the payoff schedule of a 15-year, but you give up the lower 15-year rate. You also keep flexibility: if you lose your job, you can drop back to the regular 30-year payment. The 15-year forces the higher payment.

Yes — fewer months of interest paid means a smaller mortgage interest deduction. Under current US tax law (post-TCJA 2018), most homeowners take the standard deduction anyway ($16,100 single / $32,200 MFJ in 2026), so the lost deduction is often zero. The savings on actual interest paid almost always exceeds any tax benefit.

Same trade-off, smaller numbers. A 60-month vs 36-month auto loan on $30,000 at 8% APR: 60-month = $608/mo, $6,500 total interest; 36-month = $940/mo, $3,800 total interest. The shorter term saves $2,700 but costs $332 more per month. Auto loans depreciate fast — being underwater (owe more than the car is worth) is a real risk on 72+ month loans.

Only by refinancing — the term is fixed at origination. Refinancing has closing costs (typically 2–5% of loan balance). Alternative: simply make extra principal payments equal to what a 15-year would require. You get the same payoff result without closing costs and keep the option to pause if needed.