15-Year vs. 30-Year Mortgage
A 15-year loan costs more each month but saves a lot of interest. See exactly how much, and how an extra payment changes things.
Your numbers
Rates are examples. 15-year rates are usually 0.5–0.75 points lower.
Over time
15-year yearly amortization table
30-year yearly amortization table
Which term is right for you?
A 30-year mortgage keeps the required payment low, which gives you flexibility. A 15-year loan builds equity fast and usually has a lower rate. A middle path is to take the 30-year and add extra principal when you can. Use the extra payment box to see the effect.
FAQ
How is the monthly payment calculated?
It uses the standard formula M = P·r / (1 − (1+r)−n), where r is the monthly rate and n is the number of months. For example, $300,000 at 6% for 30 years is $1,798.65 a month.
Do extra payments really save that much?
Yes. Extra principal reduces the balance that future interest is charged on, so savings compound. Check that your lender applies extra payments to principal.
Are taxes and insurance included?
No. This tool compares principal and interest only, since taxes and insurance are the same for either term.
Disclaimer: These calculators give estimates for education only and are not financial, legal or tax advice. Interest rates shown are examples, not offers. PMI figures are rough estimates. Talk to a licensed loan officer for real quotes.