15-Year vs. 30-Year Mortgage at Today's Rates: Which Makes Sense for You?

Freddie Mac's survey held the average 30-year fixed rate at 7.40% on October 15, 2026, while the 15-year fixed averaged 6.71%. That 0.69-point gap is meaningful, and it raises a question more buyers are asking: is a 15-year loan worth the higher payment?

Here is the math on a median-priced Central Ohio home. September's median sale price was $334,250. With 20% down, that is a $267,400 loan.

The Side-by-Side Numbers

• 30-year at 7.40%: about $1,851 a month, with roughly $399,100 in total interest over the life of the loan.
• 15-year at 6.71%: about $2,360 a month, with roughly $157,500 in total interest.
• The difference: the 15-year costs about $509 more each month, but saves roughly $241,700 in interest.
• After 7 years: you would still owe about $245,200 on the 30-year loan, compared with about $175,000 on the 15-year.

The Middle Path: A 30-Year Loan With Extra Payments

Some buyers take the 30-year loan for flexibility and voluntarily pay more each month. If you paid the same $2,360 a month on the 30-year loan, you would pay it off in a little over 16 years with about $193,100 in total interest.

That is about $35,600 more interest than the 15-year loan, which is essentially the price of flexibility. In a tight month, a job change, or an emergency, you can drop back to the required $1,851 payment. With a 15-year loan, the higher payment is required every month.

The Trade-Off on Buying Power

A higher payment means a lower maximum price. At a $2,000 monthly principal and interest budget, a 30-year loan at 7.40% supports a loan of about $288,900. A 15-year loan at 6.71% supports about $226,600. For many first-time buyers, that gap decides it.

A 15-Year Loan Tends to Fit If...

• The higher payment fits comfortably with room left for savings and emergencies.
• You want the home paid off before a milestone like retirement or college tuition.
• You are a move-up buyer or downsizer bringing significant equity, so a smaller loan keeps the payment manageable.

A 30-Year Loan Tends to Fit If...

• You are stretching to buy your first home and need the lower required payment.
• Your income varies, or you want a cushion for other goals.
• You expect to refinance if rates fall, which makes the long-term interest totals less relevant.

Bottom Line

At today's rates, a 15-year loan on a median-priced Central Ohio home costs about $509 more a month but saves roughly $241,700 in interest. If that payment fits comfortably, it builds equity remarkably fast. If it does not, a 30-year loan with extra payments when you can afford them captures much of the savings while keeping your safety net.

Margaret Lipp | REMAX Premier Choice

Serving Upper Arlington, Dublin, Worthington, Clintonville, Hilliard, Powell, Grandview, and all Central Ohio communities

Data source: Columbus REALTORS® Central Ohio Housing Report, September 2026 (released October 13, 2026), based on Columbus & Central Ohio Regional MLS residential data. MLS price figures do not account for sale concessions. Mortgage rate data: Freddie Mac Primary Mortgage Market Survey, week of October 15, 2026. Payment examples show principal and interest only and are illustrative, not a loan quote; property taxes and insurance are additional. Consult a licensed lender for rates and terms.