The 15-Year vs 30-Year Mortgage Decision: What Banks Don't Tell You

The standard advice is simple: always take the 15-year mortgage if you can afford it. It's usually correct — but not always. Here's the actual math so you can decide for your specific situation. The headline numbers On a $350,000 mortgage at 6.5%: 30-Year 15-Year Monthly payment $2,212 $3,040 Total interest $446,000 $197,000 Total cost $796,000 $547,000 Interest savings — $249,000 The 15-year saves a quarter million dollars in interest. That's a compelling number. But the monthly payment gap is $828. Before blindly choosing, you need to know what that $828 actually costs you in other opportunities. The flip side: what you give up That extra $828/month could be: Maxing out a Roth IRA ($583/month — $7,000/year at 30, growing at 7% = ~$600k by retirement) Extra payments on the 30-year mortgage itself (same effect as the 15-year, with more flexibility) A fully funded emergency fund (financial security has real value) Index fund investments (compounding starts sooner, even with smaller amou