Mortgage comparison: 15 years vs 30 years Overview Looking to get a 15- or 30-year fixed-rate mortgage? Use the "Get Free Quote" button at the top of the page to get personalized rate quotes for a mortgage, refinance, home equity loan or debt consolidation loan. The Payment Schedule lets you make direct year-by-year comparisons between the two types of loans to see how fast you'd pay down the loan principle and how rapidly your total interest costs would accumulate. You'll also see a graph that illustrates the decline in your mortgage principle over the first 15 years for both loans, as well as the Payment Schedule –an annual amortization table –for the two types of loans. That table will show your tax savings for both types of loans, for both the first year and the average annual savings over the life of the loan. Once you're entered all your information, click "View Report" and you'll get a new page comparing the two mortgage types but also with a table of Interest and Income Tax Information. ![]() That's because that information will be reflected in your individualized report. You may notice that varying your marginal tax rate doesn't seem to have any immediate effect on your figures. If you wish to explore a range of values, to see what effect changing the mortgage rates, loan amounts or your marginal tax rate would have, you can use the sliding green triangles to adjust your figures. In the blue bar above the calculator, you'll see the total mortgage interest savings you'd realize from a 15-year mortgage, as well as how much more your monthly mortgage payment would be for that type of loan. Next, enter the interest rates for both 15- and 30-year loans and hit "Calculate." Your monthly payments for the two types of loans will display right below the mortgage inputs. Be sure to use your taxable income, not your gross income, in determining your rate. If you don't know what your marginal tax rate is, look it up using the table at the bottom of the page. Start by entering the loan amount and your marginal tax rate. A 30-year fixed-rate mortgage gives you much lower monthly payments, but you'll pay a lot more interest over the long run and will be making mortgage payments for a much longer time. ![]() There are pros and cons to choosing each type of mortgage and it really boils down to your own personal financial situation.Ī 15-year fixed-rate mortgage lets you pay off the loan in half the time and pay significantly less interest in the long run, but also requires higher monthly mortgage payments. The two most popular fixed-rate mortgages are the 15-year and 30-year fixed-rate mortgages. The prepayment amount used in this calculation is the amount that you would have to spend on closing costs. ![]() It is the number of months it will take for your after-tax interest and PMI savings to exceed both your closing costs and any interest savings from prepaying your mortgage. This is the most conservative break even measure.
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