Can I just pay off a 30-year mortgage early instead?

Yes. Taking the 30-year term and paying extra toward principal gives you flexibility a 15-year term does not, because you can stop the extra payments in a tight month. The trade-off is that you will usually start with a slightly higher rate.

Why is the rate lower on a shorter mortgage term?

A shorter term means the lender is exposed to risk for less time, so shorter terms are generally priced lower. The gap moves with the market, so check current rates before you run your comparison.

What term makes sense if I might move in a few years?

If you expect to sell before the loan is far along, the monthly payment usually matters more than the total interest, because you will not be in the loan long enough for the interest savings to build up. Talk it through with a mortgage loan originator.

Compare Mortgage Terms Calculator 15 vs 30 Year

Q: Is a 15-year mortgage better than a 30-year?

Neither is better in every case. A 15-year term usually carries a lower rate and much less total interest, but the monthly payment is higher. A 30-year term keeps the payment lower and leaves more room in your budget. The right answer depends on what else that money needs to do.

Q: Does this calculator include taxes and insurance?

No. It compares principal and interest only. Your actual monthly payment will also include property taxes and homeowners insurance, and mortgage insurance if your down payment is under 20 percent.

Compare Mortgage Terms Calculator

Comparing mortgage terms?

The term of your mortgage is how long you have to pay it back, and it changes two things at once: what you pay every month, and what the loan costs you in total. Enter a loan amount and up to three term-and-rate combinations, and the calculator will show the total cost of each one side by side.

How the mortgage comparison calculator works

Start with the amount you expect to borrow, which is the purchase price minus your down payment. Then enter the terms you are weighing. Most people compare 15, 20 and 30 years, but you can put in whatever combination you are considering.

Each term needs its own interest rate, because shorter terms are usually priced lower than longer ones. Use current mortgage rates rather than the same rate across all three, or the comparison will understate how much the shorter term helps.

The results compare principal and interest only. Your real monthly payment will also include property taxes and homeowners insurance, and mortgage insurance if your down payment is under 20 percent. For a fuller estimate of a single loan, use the mortgage calculator instead.

Frequently Asked Questions

Can I pay off a 30-year mortgage early?

Does the online mortgage calculator include taxes and insurance?

Is a 15-year mortgage better than a 30-year?

Is a shorter-term mortgage not automatically the right call?

What changes when you change the term of your mortgage?

What mortgage term makes sense if I might move in a few years?

View More FAQs

* This calculator is intended as a convenience for illustrative purposes only. Values provided by this calculator are estimates based on the information provided and are not necessarily reflective of the actual loan terms based on each individual’s particular situation.