Mortgage Comparison: 15 Years vs. 30 Years

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. You can use the table below to assist you in estimating your Federal tax rate for 2011. Filing Status and Income Tax Rates 2011 Caution: Do not use these tax rate schedules to figure 2010 taxes. Use only to figure 2011 estimates. Tax rate Married filing jointly or qualified widow(er) Single Head of household Married filing separately 10% $0 - 17,000 $0 - 8,500 $0 - $12,150 $0 - 8,500 15% $17,000 - 69,000 $8,500 - 34,500 $12,150 - 46,250 $8,500 - 34,500 25% $69,000 - 139,350 $34,500 - 83,600 $46,250 - 119,400 $34,500 - 69,675 28% $139,350 - 212,300 $83,600 - 174,400 $119,400 - 193,350 $69,675 - 106,150 33% $212,300 - 379,150 $174,400 - 379,150 $193,350 - 379,150 $106,150 - 189,575 35% over $379,150 over $379,150 over $379,150 over $189,575 Source: http://www.irs.gov 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.

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