Why choose a 30-year term?

The lower monthly payment. It improves cash flow and qualifying power, and you can still pay extra whenever you want, which gives you flexibility a 15-year term does not.

How much more interest does a 30-year cost?

Meaningfully more over the full term, because you are borrowing for twice as long. Whether that matters depends on how long you actually keep the loan. Most people do not keep a mortgage for 30 years.

Can I pay it off early?

Yes. There is no prepayment penalty on the conventional loans we place. Paying extra toward principal shortens the term and reduces total interest without locking you into a higher required payment.

30-year fixed

The same principal and interest payment for thirty years

The most common mortgage in the country, and for good reason: the lowest required payment of the standard terms, with complete certainty about what it will be.

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Often considered by

Buyers prioritising a lower monthly payment

Worth weighing

More total interest paid over the life of the loan

Angel Hernandez, NMLS #1099542
Licensed in: CA
Equal Housing Opportunity
(619) 567-1553
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30-Year Fixed
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How it works

Your interest rate is set at closing and does not change. The principal and interest portion of your payment stays identical for the full term. Property taxes and insurance can still move, so the total monthly amount may shift, but the loan portion will not.

Where your payment actually goes

This surprises people, and it is worth understanding before you compare terms.

Interest first, by design

In the early years most of each payment goes to interest, and relatively little to principal. That balance shifts gradually, and only accelerates toward the back half of the term.

It is also why paying extra early has a disproportionate effect: every extra dollar of principal removes all the future interest that dollar would have carried.

We can model this against your actual scenario. The calculator gives an estimate, and a quote gives real numbers.

The honest trade-offs

What you gain

The lowest required payment of the standard terms
More qualifying power on the same income
Certainty for the full term
Freedom to pay extra whenever you choose

What it costs

More total interest across the full term
Equity builds slowly in the early years
Usually a slightly higher rate than a 15-year

When a shorter term is worth comparing

If the higher payment is comfortable rather than a stretch, a 15-year term usually costs meaningfully less overall and often carries a lower rate. The question is not whether it saves money. It does, but whether committing to the higher required payment is the right use of that money for you.

There is a middle path worth knowing about: take the 30-year term and pay extra voluntarily. You give up a little on rate, and you keep the ability to fall back to the lower payment if your circumstances change.

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