Which is better, 30 or 15 year Mortgage?

This loan comparison calculator will compare a 30 and 15 year mortgage. If you'd like, you can also enter your own mortgage terms. As you will see, a 15 year mortgage will allow you substantial interest savings. However, the increased monthly payment might not be affordable. Consult a financial advisor for a more specific estimate of the benefits to you.

Place your cursor in the fields and fill in the requested information to the best of your knowledge. Use the tab key on your keyboard to move through the form. Once the required fields are completed, the form will automatically populate with the information you have requested.

$     How much do you plan to borrow?
   % What is the interest rate of the new home loan?
  30 Year Mortgage   15 Year Mortgage  
              What is the term of the mortgage? (number of years financed).
      This is what your calculated monthly payment would be.
      This is the total amount you will pay per year.
      This is the total amount you will pay over the term of the loan.
      This is the total amount of interest you will pay on the loan.
 
As you can see, the total interest you pay over the life of a loan decreases as you decrease the number of years the loan is amortized. There is a serious drawback, though. Your monthly payment can increase significantly, therefore, weigh your options very carefully. Talk to a financial advisor who can help you decide what's best for you.