Quick answer
The loan term is how long you have to repay the mortgage, most often 30 or 15 years. A shorter term means a higher monthly payment but usually a lower rate and much less interest over the life of the loan.
Key facts
30 years vs 15 years at today’s averages
| Term | Rate | Monthly principal and interest | Total interest |
|---|---|---|---|
| 30 years | 7.24% | $2,044 | $436,018 |
| 15 years | 6.6% | $2,630 | $173,372 |
The 15-year loan costs $585 more a month but saves $262,646 in interest, because you borrow for half as long and at a lower rate. The 15-year vs 30-year comparison covers when each makes sense.
Other terms and limits
Lenders also offer 10-, 20- and 25-year fixed loans, and an adjustable-rate mortgage usually runs 30 years in total. A Qualified Mortgage can’t exceed 30 years. You can shorten an existing term with extra principal payments or a refinance; the amortization schedule shows the effect month by month. Compare terms with your own numbers in the mortgage payment calculator.
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average; 15-year fixed rate, national weekly average (Week of Oct 29, 2026)
- CFPB — Longest term allowed on a Qualified Mortgage (Jan 7, 2025)
- CFPB: Understand the different kinds of loans available (loan term)
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.