Mortgage Term Comparison Calculator
Compare different mortgage terms to find the best option for your financial situation
| Metric | 15-Year | 30-Year | Difference |
|---|---|---|---|
| Monthly Payment | $0.00 | $0.00 | $0.00 |
| Total Interest Paid | $0.00 | $0.00 | $0.00 |
| Total Cost | $0.00 | $0.00 | $0.00 |
| Payoff Date | -- | -- | -- |
| Equity After 5 Years | $0.00 | $0.00 | $0.00 |
Understanding Mortgage Terms
Shorter Term (15-Year):
- Higher monthly payments
- Significantly less interest paid over life of loan
- Build equity faster
- Typically has lower interest rates
- Better for those who can afford higher payments
Longer Term (30-Year):
- Lower monthly payments
- More interest paid overall
- More cash flow flexibility
- Tax deductions last longer
- Better for those needing lower payments
When to Choose 15-Year:
- You can comfortably afford the higher payment
- Want to save on interest
- Plan to stay in home long-term
- Want to build equity faster
When to Choose 30-Year:
- Need lower monthly payments
- Want more budget flexibility
- Plan to invest the payment difference
- May move before paying off mortgage
A Mortgage Term Comparison Calculator helps borrowers analyze different loan durations to find the optimal balance between monthly affordability and total interest costs. This tool is essential for homebuyers deciding between short-term and long-term mortgage options.
How the Calculator Works
Inputs Required:
Loan amount
Interest rate
Loan terms to compare (e.g., 15, 20, and 30 years)
Additional payment options (if applicable)
Key Calculations:
Monthly Payment Calculation:
Uses standard amortization formula for each term
PMT = P × [r(1+r)^n]/[(1+r)^n-1]
Total Interest Comparison:
Calculates cumulative interest over each loan's life
Amortization Schedule:
Shows principal/interest breakdown year-by-year
Example Comparison: $400,000 Loan at 5%
| Term | Monthly Payment | Total Interest | Total Cost | Interest Savings vs. 30-Year |
|---|---|---|---|---|
| 15-Year | $3,163 | $169,383 | $569,383 | $218,436 |
| 20-Year | $2,639 | $233,458 | $633,458 | $154,361 |
| 30-Year | $2,147 | $372,894 | $772,894 | - |
Key Factors to Consider
Monthly Budget Impact:
30-year: Lowest payments (best for cash flow)
15-year: Higher payments but faster equity
Interest Savings:
15-year saves ~$200k vs. 30-year
20-year offers middle ground
Opportunity Cost:
Could extra cash be better invested elsewhere?
Loan Type Variations:
Compare fixed vs. ARM rates for each term
Advanced Features in Quality Calculators
Extra Payment Analysis: How occasional additional payments affect each term
Break-even Analysis: When higher payments offset interest savings
Refinance Comparison: Current loan vs. new term options
Tax Implications: Interest deduction differences
When to Choose Each Term
15-Year Mortgage Best For:
Borrowers who can afford higher payments
Those prioritizing interest savings
Homeowners planning long-term ownership
20-Year Mortgage Best For:
Borrowers wanting balance between savings and affordability
Those who get a rate closer to 15-year terms
30-Year Mortgage Best For:
First-time homebuyers needing lower payments
Investors focusing on cash flow
Those who may move before full term