15 vs 30 year Mortgage
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Which is better: a 15 or 30 year mortgage term?
15 year term saves you $69,762, but costs an additional $228 per month.
A 15 year mortgage term will save you $69,762 in interest, but only if you can afford an additional $228 per month. Total payments for a $100,000, 15 year mortgage at 6.000% is $151,894. Total payments for the same loan with a 30 year mortgage at 6.250% is $221,656.
Mortgage Comparison
15 year mortgage 30 year mortgage
Loan amount $100,000 $100,000
Interest rate 6.000% 6.250%
Monthly payment $843.86 $615.72
Total interest $51,894 $121,656
Total payments $151,894 $221,656
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 mortgage 30 year mortgage
First months interest $500.00 $520.83
First months principal $343.86 $94.89
First years interest $5,885 $6,217
First years tax savings $1,471 $1,554
Avg. years tax savings $865 $1,014
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