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[quote=Anonymous][quote=Anonymous]We just refi'd to a 15 yr at 2.85% from a 30 yr @ 4.75%.  Our monthly payment will be significantly higher but our youngest daughter is going to public K this year, so no more preschool tuition.  The difference between our old and new mortgage payment is less than the preschool payment, so we figured we won't "feel" the increased payment at all.

What is really astonishing somehow is when you look at what you will have paid over the life of the mortage.  In our case, this is a 300K difference on a 417K loan.  In other words, with the 15 year will have paid about $515K over the course of the loan but with the 30 yr, that would be 815K (roughly).

We can afford the mortgage on one salary (my salary).  It would be quite a struggle to afford on DH's salary alone (I make 3X what he does).  But we have to assume that wouldn't be the case for a sustained period of time.  I work for a very stable employer.[/quote]

But the OP's question is not total cost of a 15 yr. v. a 30 yr. over the life of the loan, it's the diff. in cost between a 15 yr. paid off in 15 vs. a 30 yr. paid off (at a higher interest rate)  in 15 yrs.

I haven't run the numbers but whatever that difference is, is the price you pay for the considerable flexibility (IMO) of not being locked into the higher payment of a 15 yr. mortgage.  Any number of things can happen to put the squeeze on finances and unless you're comfortably over the line (and OP says the 15 yr. would be tight), then I generally prefer to take the 30 yr. and pay it off in 15 (and have the flexibility to change payments down (or up) if events intervene).

YMMV.  :D [/quote]

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