Mortgage Comparison: 15 Years vs. 30 Years

Determining which mortgage term is right for you can be a challenge. With a 15 year mortgage you will pay significantly less interest, but only if you can afford the higher monthly payment. Use this calculator to compare these two mortgage terms, and let us help you decide which term is better for you.

15 year term saves you INTEREST_DIFFERENCE, but costs an additional PAYMENT_DIFFERENCE per month.

A 15 year mortgage term will save you INTEREST_DIFFERENCE in interest, but only if you can afford an additional PAYMENT_DIFFERENCE per month. Total payments for a LOAN_AMOUNT, 15 year mortgage at TERM15_INTEREST_RATE are TERM15_TOTAL_OF_PAYMENTS. Total payments for the same loan with a 30 year mortgage at TERM30_INTEREST_RATE are TERM30_TOTAL_OF_PAYMENTS. **GRAPH**
Mortgage Comparison
 15 year mortgage30 year mortgage
Loan amountLOAN_AMOUNTLOAN_AMOUNT
Interest rateTERM15_INTEREST_RATETERM30_INTEREST_RATE
Monthly paymentTERM15_MONTHLY_PITERM30_MONTHLY_PI
Total interestTERM15_INTEREST_PAIDTERM30_INTEREST_PAID
Total paymentsTERM15_TOTAL_OF_PAYMENTSTERM30_TOTAL_OF_PAYMENTS

Interest and Income Taxes

Changing your mortgage term can make a difference in not only the interest you pay, but your income taxes. A longer mortgage term can increase your income tax deduction. Take a look at the results below, to see how the different terms stack up.
Interest and Income Tax Comparison
 15 year mortgage30 year mortgage
First month's interestTERM15_FIRST_MONTH_INTEREST TERM30_FIRST_MONTH_INTEREST
First month's principalTERM15_FIRST_MONTH_PRINCIPALTERM30_FIRST_MONTH_PRINCIPAL
First year's interestTERM15_FIRST_YEAR_INTERESTTERM30_FIRST_YEAR_INTEREST
First year's tax savingsTERM15_FIRST_YEAR_TAX_SAVINGSTERM30_FIRST_YEAR_TAX_SAVINGS
Avg. year's tax savingsTERM15_AVG_TAX_SAVINGSTERM30_AVG_TAX_SAVINGS
**GRAPH**

Payment schedule

**REPEATING GROUP**

Mortgage Comparison: 15 Years vs. 30 Years Definitions

Mortgage amount
Original or expected balance for your mortgage.
Interest rate
Annual interest rate for your mortgage. Interest rates are generally lower for shorter term mortgages.
Marginal tax rate
This is your combined state and federal tax rate. This is used to calculate your potential income tax savings by deducting your mortgage interest. You can use the table below to assist you in estimating your Federal tax rate. Use the table below to assist you in estimating your Federal 2014 tax rate.
Filing Status and Income Tax Rates 2014*
Tax RateMarried Filing Jointly or Qualified Widow(er)SingleHead of HouseholdMarried Filing Separately
10%$0 - $18,150$0 - $9,075$0 - $12,950$0 - $9,075
15%$18,150 - $73,800$9,075 - $36,900$12,950 - $49,400$9,075 - $36,900
25%$73,800 - $148,850$36,900 - $89,350$49,400 - $127,550$36,900 - $74,425
28%$148,850 - $226,850$89,350 - $186,350$127,550 - $206,600$74,425 - $113,425
33%$226,850 - $405,100$186,350 - $405,100$206,600 - $405,100$113,425 - $202,550
35%$405,100 - $457,600$405,100 - $406,750$405,100 - $432,200$202,550 - $228,800
39.6%over $457,600over $406,750over $432,200over $228,800
*Caution: Do not use these tax rate schedules to figure 2013 taxes. Use only to figure 2014 estimates. Source: 2014 tax brackets http://www.irs.gov
Monthly payment
Monthly principal and interest payment (PI). Both 30 year and 15 year mortgages are shown.
Total payments
Total of all monthly payments over the full term of the mortgage. Both 30 year and 15 year mortgages are shown.
Total interest
Total of all interest paid over the full term of the mortgage. Both 30 year and 15 year mortgages are shown.


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