Refinance Scenario

15-Year vs 30-Year Refinance Calculator

See exactly how much interest you can save by refinancing into a 15-year loan instead of resetting the clock with a new 30-year term. Compare the monthly payments and total costs below.

Current Loan

$
%
yrs

New Loan

%
$

Total Cost Over Time

Keep current loan
Refinance

Refinancing costs more

Your monthly payment increases by $426 - but you pay off the loan 10 years sooner and save $161,961 in total interest.

Current payment$2,026/mo
New payment$2,451/mo
Monthly savings-$426/mo

Break-even

Never
Total interest saved
Higher monthly payment, but 10 fewer years of payments
+$161,961

Estimates based on your inputs. Actual results may vary. Terms →

What your results mean

By refinancing to a 5.5% rate on a 15-year term, you pay an extra $426 per month. Because your new payment is higher, you will never recover your closing costs through monthly savings. Over the life of the loans, you will save a net total of $161,961.

Should you refinance?

Worth considering if:

  • You plan to stay in the home past the break-even point
  • Your rate drops by at least 0.75%
  • You can roll closing costs into the loan or afford them upfront

Think twice if:

  • You plan to sell or move within the next few years
  • The new term resets your amortization significantly
  • Closing costs exceed your monthly months of savings

What to do next

→ Calculate your new monthly payment→ See rent vs. buy comparison→ How much home can you afford?

Rates shown are for illustration. Contact your lender for a formal quote.

The 15-Year Advantage

The biggest benefit of a 15-year refinance is the massive interest savings. Not only do you pay off the principal twice as fast, but 15-year loans typically offer lower interest rates than 30-year loans. This compound effect can save you tens of thousands of dollars over the life of the loan.

The 30-Year Flexibility

Refinancing into a 30-year loan will almost always give you the lowest possible monthly payment, which is ideal if you need to free up cash flow immediately. You can still pay it off early by making extra payments, but you won't get the lower interest rate of a 15-year term.

Frequently Asked Questions

Should I refinance to a 15-year or 30-year mortgage?

A 15-year mortgage comes with higher monthly payments but typically offers a lower interest rate and saves you tens of thousands in lifetime interest. A 30-year mortgage provides lower monthly payments, giving you more budget flexibility, but costs much more in total interest.

Why is the interest rate lower on a 15-year refinance?

Lenders view shorter-term loans as less risky. Because they get their money back faster and are exposed to less inflation risk, they pass those savings on to you in the form of a lower interest rate.

Can I just overpay my 30-year mortgage instead?

Yes. Getting a 30-year mortgage and making extra payments to pay it off in 15 years gives you the flexibility to stop making those extra payments if money gets tight. However, you won't get the lower interest rate that a true 15-year mortgage offers.

Is it harder to qualify for a 15-year refinance?

It can be. Because the monthly payments are higher on a 15-year loan, your debt-to-income (DTI) ratio will be higher. You'll need sufficient income to prove you can comfortably afford the larger payment.

What to calculate next

Should I Refinance? Calculator

Enter your current loan and new rate - get a clear yes/no decision with break-even analysis.

Extra Mortgage Payment Calculator

See how extra monthly payments can reduce your mortgage term and total interest.

Estimates based on your inputs. Actual results may vary. Terms →