15-Year vs. 30-Year Mortgage
The term of your mortgage dramatically affects your monthly payment, total interest paid, and wealth-building timeline. In California's high-cost market, this decision matters even more.
| Feature | 15-Year Mortgage | 30-Year Mortgage |
|---|---|---|
| Monthly Payment (on $800K) | ~$6,100/mo at 6.0% | ~$4,800/mo at 6.5% |
| Total Interest Paid | ~$298,000 | ~$920,000 |
| Interest Rate | Typically 0.5–0.75% lower | Standard market rate |
| Monthly Cash Flow | Less flexible — higher payment | More flexible — lower payment |
| Equity Building | Much faster | Slower, especially early years |
| Qualification | Harder — higher payment increases DTI | Easier — lower payment helps DTI |
| Total Cost Savings | Saves ~$620K in interest on $800K loan | Lower monthly obligation |
Best For: 15-Year Mortgage
Borrowers with high income relative to the loan amount who want to minimize total cost and build equity rapidly. Ideal for refinancing into a shorter term.
Learn More About 15-Year Mortgage →Best For: 30-Year Mortgage
Most California buyers — the lower payment provides flexibility, and extra payments can be made voluntarily to accelerate payoff without the commitment of a 15-year schedule.
Learn More About 30-Year Mortgage →The Bottom Line
In California's expensive market, the 30-year is more popular because the lower payment helps with qualification and cash flow. But if you can comfortably afford the 15-year payment, the interest savings are enormous. Save Financial shows clients both options so you can choose with full visibility.
Not Sure Which Is Right for You?
Save Financial runs side-by-side comparisons for every client — showing you the exact dollar difference between programs for your specific situation. No guessing, just math. Call (888) 703-1840 or get a free quote online.
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Expert Contributor
Mike Baasti, Licensed Mortgage Broker
Expert contributor to Mortgage Guide California. Licensed mortgage broker (Sponsored by Save Financial, Inc. (NMLS #377740), DRE #01875766) and founder of Save Financial, Inc. in Newport Beach, CA. 20+ years originating conventional, FHA, VA, jumbo, and specialty loans across California.
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Last updated: July 2026. Sources: FHFA, HUD, VA, CalHFA, CFPB, California DRE, California Association of Realtors. All loans subject to credit approval. Rates subject to change.