On a $75,000 loan at 5.5%, a 15-year term saves you roughly $36,000 in interest compared to a 30-year term. Your monthly payment will be higher—around $613 versus $426—but you'll be debt-free in half the time and pay far less in total cost.

Mortgages are the most common 15-year loan, but home equity loans, some personal loans, and certain business loans also offer 15-year options. Lenders may offer slightly lower interest rates on 15-year terms compared to 30-year terms because the shorter duration reduces their risk.

A 15-year loan is ideal if you can comfortably afford the higher monthly payment and want to minimize total interest. It works well for borrowers with stable income who prioritize paying off debt quickly. If the payment stretches your budget too thin, a longer term with extra payments when possible may be a safer approach.