Is a 15-year mortgage better than a 30-year?

A 15-year mortgage carries a lower interest rate and saves enormous interest, but the monthly payment is much higher. On a $300,000 loan, a 15-year term might run roughly $700–$900 more per month than a 30-year, yet you could save well over $100,000 in total interest and own the home in half the time. The 30-year keeps payments low and flexible, which protects your cash flow and lets you invest the difference. A common middle path: take the 30-year for safety, then make extra principal payments when you can – you control the schedule without locking into a higher required payment. Decide based on how stable your income is and whether you'd actually invest the savings.