Everyone repeats the same line: "Shorter term saves money." It's true, and it's dangerously incomplete. A 15-year mortgage saves a fortune in interest while silently demanding a monthly payment that can wreck housing affordability. Here's the honest, number-by-number breakdown.
The classic example, run properly
Take a $360,000 loan at 6.5%:
| Term | Monthly P&I | Total interest |
|---|---|---|
| 15 years | $3,136 | $204,478 |
| 30 years | $2,275 | $459,160 |
The 15-year payment is about $860 higher each month, but it saves roughly $255,000 in interest — more than half the loan balance itself.
The cost most comparisons skip
That extra $860/month has an opportunity cost. Invested at even a modest return for 30 years, it can out-earn the interest you "saved" — for buyers with high investment discipline. The 15-year term wins only if you'd otherwise spend, not invest, the difference.
What actually fits most budgets
A good rule: choose the term whose payment leaves a comfortable margin for emergencies, savings and lifestyle — not the term that minimizes total interest at the cost of squeezed cash flow. Many homeowners pick 30-year payments and voluntarily make extra principal contributions, getting most of the 15-year savings with 30-year flexibility.
Decide with the tool
The HomMetra calculator shows both terms side by side with your own price and rate — monthly payment, total interest and the exact savings gap. Run your real numbers before a lender quotes you either one.