15-Year vs 30-Year Mortgage in California

On a typical California home, a 15-year mortgage saves tens of thousands to over $100,000 in total interest compared to a 30-year mortgage. The exact savings depend on the home price, down payment, and interest rate. The 15-year rate is usually 0.5% to 0.75% lower than the 30-year rate.

It depends on your financial situation. A 15-year mortgage is better if you can comfortably afford the higher payments and want to minimize interest costs. A 30-year mortgage is better if you need lower payments, want more cash flow flexibility, or plan to invest the payment difference in higher-return assets.

Yes. Refinancing from a 30-year to a 15-year mortgage is common, especially when interest rates drop. You will get a lower rate and pay off your home faster, but your monthly payment will increase. Factor in closing costs (typically 2-5% of the loan) when deciding.

15-year mortgage rates are typically 0.5% to 0.75% lower than 30-year rates. This is because lenders take on less risk with the shorter loan term. The lower rate combined with the shorter term means dramatically less total interest paid over the life of the loan.