Is a 15-year refinance better?

It saves the most interest and builds equity faster, if the higher payment fits your budget.

How much higher is a 15-year payment?

It depends on balance and rates; the examples on this page use this week's averages.

Can I switch from 30 to 15 later?

Only by refinancing again, which means new closing costs. Extra payments on a 30-year achieve a similar result without a new loan.

Is there a 20-year option?

Many lenders offer 20-year terms. The main refinance calculator compares 15, 20 and 30 years.

Guide

Refinance to a 15-year or 30-year mortgage?

Choose a 15-year if you can comfortably afford the higher payment: on $300,000 it costs $587 more a month than a 30-year at this week's averages, but saves $257,608 in interest. Choose a 30-year if you need the lower payment and flexibility.

Last reviewed November 13, 2026 · Examples use this week's rates

30-yr fixed avg 7.11% as of November 12, 2026

Source: Freddie Mac PMMS

Why the 15-year saves so much

Two things combine: half the years of interest, and a lower rate. Freddie Mac's weekly survey consistently shows 15-year averages below 30-year averages.

Why the 30-year is still popular

A lower required payment leaves room for emergencies, retirement savings or other goals. You can usually prepay principal to shorten it, though you keep the higher rate.

Questions to ask yourself

Would the 15-year payment still be comfortable if your income dropped? Do you have emergency savings? Are you carrying higher-interest debt that should be paid first? If the answers make you hesitate, a 20-year term or a 30-year with voluntary extra payments may be a better fit.

Worked example at this week's rates

$200,000: 30-yr at 7.11% = $1,345/month ($284,349 interest); 15-yr at 6.45% = $1,737/month ($112,610 interest).
$300,000: 30-yr at 7.11% = $2,018/month ($426,523 interest); 15-yr at 6.45% = $2,605/month ($168,915 interest).
$450,000: 30-yr at 7.11% = $3,027/month ($639,784 interest); 15-yr at 6.45% = $3,908/month ($253,372 interest).

Rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Closing costs are estimated at 2% unless stated, and payments are principal and interest only.

Run your own numbers

Use the 15 vs 30-year refinance calculator with your balance, rate and costs. Or see a worked scenario: $300,000 from 7.5% to 6.5%.

Estimates only. Default rates are Freddie Mac PMMS weekly averages — a national purchase-mortgage benchmark, not a local refinance quote. Payments are principal and interest only. reficalculator.com is not a lender or broker; see how we calculate.

Frequently asked questions

Is a 15-year refinance better?: It saves the most interest and builds equity faster, if the higher payment fits your budget.
How much higher is a 15-year payment?: It depends on balance and rates; the examples on this page use this week's averages.
Can I switch from 30 to 15 later?: Only by refinancing again, which means new closing costs. Extra payments on a 30-year achieve a similar result without a new loan.
Is there a 20-year option?: Many lenders offer 20-year terms. The main refinance calculator compares 15, 20 and 30 years.
Where do these rates come from?: Freddie Mac PMMS weekly averages, a national purchase-mortgage benchmark.