There's no single right answer. The two structures serve different goals.

A 15-year term builds equity faster and cuts total interest substantially, at the cost of a higher monthly payment. A 30-year term keeps monthly cash flow lighter while increasing total interest paid. Fifteen-year loans also tend to price at a lower rate than thirty-year loans, which is part of why the same loan amount can produce payments that differ by nearly double.

Here's what's often missed. Your term affects how much you can borrow. A 15-year payment is larger, which raises your DTI and lowers the loan amount you qualify for. The same income supports a different price range depending on the term you choose.

There's a middle path. Take the 30-year term and apply extra principal whenever you have room. Your effective payoff accelerates while your required monthly obligation stays at the lower figure. Owner-occupied loans generally carry no prepayment penalty, which is what makes this strategy work.

The situation to avoid is stretching into a 15-year payment and finding your cash flow locked up. For many buyers, taking 30 years with breathing room and revisiting a refinance later beats forcing a 15-year payment today. We weigh monthly budget against long-term plans when setting your repayment structure.