Mortgage comparison: 15 years vs. 30 years
Which is better: a 15 or 30 year mortgage term?

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 is TERM15_TOTAL_OF_PAYMENTS. Total payments for the same loan with a 30 year mortgage at TERM30_INTEREST_RATE is TERM30_TOTAL_OF_PAYMENTS.

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 months interestTERM15_FIRST_MONTH_INTEREST TERM30_FIRST_MONTH_INTEREST
First months principalTERM15_FIRST_MONTH_PRINCIPALTERM30_FIRST_MONTH_PRINCIPAL
First years interestTERM15_FIRST_YEAR_INTERESTTERM30_FIRST_YEAR_INTEREST
First years tax savingsTERM15_FIRST_YEAR_TAX_SAVINGSTERM30_FIRST_YEAR_TAX_SAVINGS
Avg. years tax savingsTERM15_AVG_TAX_SAVINGSTERM30_AVG_TAX_SAVINGS

15 Year Payment schedule

TERM15_SCHEDULE

30 Year Payment schedule

TERM30_SCHEDULE



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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.

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.

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.



Loan approval is not guaranteed and is subject to verification of specific information that is requested at time of application.  Specified rates may not be available for all borrowers.  Rates are subject to change.

California Dept. of Real Estate, Broker #01050210

Cobalt Financial Corporation headquarters:
10935 Vista Sorrento Parkway, Suite 350, San Diego, CA 92130


Randy Erickson Real Estate Investments Inc. 701 7th Street Hermosa Beach, CA 90254
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