Mortgage
15-Year vs. 30-Year Mortgage
Compare the payment and interest trade-off between two common fixed mortgage terms.
A 15-year mortgage normally requires a much higher scheduled payment than a 30-year mortgage, but the shorter schedule can substantially reduce the number of months during which interest accrues.
Example: $400,000
| Example | Monthly payment | Total interest |
|---|---|---|
| 30 years at 6.50% | $2,528 | $510,178 |
| 15 years at 6.50% | $3,484 | $227,197 |
The 6.50% interest rate is an illustrative assumption used for both terms so the comparison isolates the effect of the loan term. It is not a current market quote.
When comparing the terms
Consider monthly cash flow, total interest, how long you expect to keep the loan, and costs that are outside principal and interest. Taxes, insurance, PMI, HOA dues, and closing costs are not included in these figures.
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Open the calculatorEducational only. This page provides general information and mathematical examples. It is not financial advice, a loan offer, approval, or rate quote. Actual terms vary by lender and borrower.