Key Takeaways - The 30-year mortgage offers lower monthly payments but costs more in total interest - The 15-year mortgage pays off faster and saves significant interest, but demands higher monthly payments - Most Florida homebuyers choose the 30-year for flexibility - Making extra principal payments on a 30-year loan gives you the best of both - The right choice depends on your cash flow, goals, and how long you plan to stay The choice between a 30-year and 15-year fixed mortgage comes down to one tradeoff: monthly cash flow versus total interest paid. Neither is universally better. Here is how to think through the decision. The numbers side by side On a $350,000 loan at a hypothetical 7% rate: A 30-year mortgage would produce a principal and interest payment of approximately $2,329 per month. Over 30 years, you would pay roughly $488,440 in total interest. A 15-year mortgage at a hypothetical 6.5% rate (15-year rates are typically 0.5 to 0.75 percentage points lower) would produce a payment of approximately $3,051 per month — about $722 more per month. But you would pay roughly $199,180 in total interest. The difference: approximately $289,260 in savings. These numbers will differ from current market rates; your KP Funding loan officer can run the exact comparison with today's pricing for your specific loan amount. The case for the 30-year More cash flow each month. On a Florida teacher's salary or a young professional's income, $700 extra per month is a grocery bill, a car payment, and money toward retirement savings. More flexibility. Life is unpredictable. A lower required payment means you are not as exposed if income drops, an unexpected expense arises, or the local real estate market changes. More room to invest. If you can earn a higher return on that $700 per month than the interest rate you are paying on your mortgage, the 30-year can actually build more wealth over time. The case for the 15-year You own your home faster. By retirement, many Florida homeowners prefer to have no mortgage payment — and the 15-year delivers that roughly 15 years sooner. Lower interest rate. The rate on a 15-year is typically meaningfully better than a 30-year, which amplifies the interest savings. Forced savings discipline. For buyers who know they will spend rather than invest the difference, the higher payment of a 15-year acts as automatic equity building. The hybrid approach Many buyers take the 30-year mortgage and make one extra principal payment per year, or round up their monthly payment. A single extra payment annually can shorten a 30-year loan by roughly five to seven years and save tens of thousands in interest — without the obligation of the higher required payment. Talk to a KP Funding loan officer about both options. We will model the exact numbers based on today's rates and your loan amount so you can make the decision on real math rather than rough estimates. KP Funding Corporation | NMLS #2442789 | Equal Housing Lender | Licensed in Florida | Not a commitment to lend. Rates subject to change.