15-Year Mortgage Calculator

What Is a 15-Year Mortgage?

A 15-year fixed-rate mortgage is a home loan with a repayment period of 15 years. Each month, you make a fixed payment that includes both principal and interest, and the loan is fully paid off at the end of the 15-year term. Because the repayment period is shorter than the standard 30-year mortgage, monthly payments are higher - but total interest costs are dramatically lower.

Why Choose a 15-Year Mortgage?

The biggest advantage of a 15-year mortgage is interest savings. Because you're borrowing money for half the time, you pay far less in total interest. Additionally, 15-year mortgages typically come with lower interest rates than 30-year loans, compounding the savings.

Key benefits:

• Save tens of thousands (or hundreds of thousands) in total interest
• Lower interest rates - typically 0.25% to 0.75% below 30-year rates
• Build equity faster - own your home outright in 15 years
• Retire debt-free - eliminate your mortgage before retirement

15-Year vs. 30-Year Mortgage Comparison

The table below shows how a 15-year mortgage compares to longer terms on a $300,000 loan:

In this example, the 15-year mortgage saves over $226,000 in interest compared to the 30-year option - even with a rate advantage of only 0.5%.

Who Should Get a 15-Year Mortgage?

A 15-year mortgage is a strong choice if you:

• Have a stable, higher income that comfortably covers the higher monthly payment
• Want to build equity quickly for retirement planning or future financial goals
• Are refinancing and want to aggressively pay down your existing loan
• Are buying a moderately priced home where the 15-year payment fits your budget
• Plan to stay in the home long-term and want to minimize total borrowing cost

When a 30-Year Mortgage May Be Better

A 15-year mortgage isn't right for everyone. The 30-year mortgage may be a better fit if:

• The higher monthly payment would strain your budget or prevent you from saving for retirement
• You want to maximize your purchasing power (qualify for a larger loan)
• You prefer lower required payments with the flexibility to make extra payments when you can
• You're in a high-cost market where the 15-year payment would be unaffordable

Example: $350,000 Loan at 6.0% (15-Year)

For a $350,000 home purchase with 10% down ($35,000 down, $315,000 loan):

• Monthly payment: $2,659
• Total interest paid: $163,554
• Loan paid off by: 2041
• Monthly savings vs. 30-year: You pay $692 more per month, but save $238,419 in total interest

Tips for Affording a 15-Year Mortgage

1. Make a larger down payment to reduce the loan balance and monthly payment
2. Buy below your maximum budget to keep the 15-year payment comfortable
3. Maintain an emergency fund of 6+ months of expenses before committing
4. Consider a 20-year term as a middle ground if 15 years is too aggressive
5. Factor in all housing costs - taxes, insurance, and maintenance - not just the mortgage payment