What would your mortgage payment be for a 15 vs. a 30-year loan?
The difference between 15-year mortgages and 30-year mortgages is more than just how long it'll take to pay off your loan. If you choose a 15-year-mortgage at a fixed rate, you'll end up with a larger monthly payment than if you had chosen a 30-year-mortgage, but you'll pay less in interest over the course of your loan.
A 30-year-mortgage is just the opposite: your monthly payments will be smaller, but you'll pay more in interest over the course of the loan.
Use the mortgage calculator to see which type of loan might be right for you.
How to use the calculator
Using the calculator is easy, but you will need to do some research before you get started. You'll need to know an estimated interest rate for bot the 15-year and 30-year options. Enter both of those numbers along with the mortgage amount. We'll show you a table with your monthly payment and total interest paid for both options.
Feel free to play with the calculator to see how much you can save in different downpayment scenarios!
Can you pay more?
While you'll never pay less on your monthly mortgage, it is possible to pay more each month. This will help you pay off your mortgage more quickly and pay less in interest over time. You can do this monthly or whenever you have a windfall, like a bonus at work or a gift from family.
The amortization table in the calculator will break down how much you'll pay in principal and interest each month. Remember, your mortgage payments are front-loaded with interest payments, which means the bulk of your monthly payment in the early years goes to interest. Eventually, you'll reach a point where you're paying more in principal than interest.