15 Year vs 30 Year Mortgage Comparison Definition
Use our free mortgage comparison calculator now to compare the cost of 15 year and 30 year mortgages – you could end up saving yourself thousands of dollars!
As any one who has taken out a mortgage before will know, it can be an overwhelming process. With the wide range of mortgage options available today, it can be very difficult to determine which option will be the most cost effective for you, while still providing you with enough funds to cover the cost of your home.
Easily Find the Best Option
Our free online mortgage comparison calculator takes all of that confusion out of the equation. It is a fantastic tool to help you as a prospective home owner to estimate the cost of your monthly repayments, so that you can determine whether to take out a 15 year mortgage or a 30 year mortgage.
Naturally, the quicker you are able to pay off your mortgage the less it will end up costing you, as interest rates are compounded each year meaning that the longer you take to pay off the loan, the more interest you will be paying. However, often 15 year mortgage repayments are simply not affordable. You can use this online 15 year vs 30 year mortgage comparison calculator to calculate the cost of your monthly repayments, as well as the total amount you will have to pay back over the time period of the mortgage.
To get started on comparing mortgage costs, simply follow these easy instructions:
1. Work out your mortgage amount. This is the amount that you are going to have to borrow. So for example, if the home costs $350 000, but you have paid a $50 000 down payment, then the amount your mortgage amount will be $300 000. This amount should be entered into the ‘amount borrowed’ box on the calculator. Be sure to not include any spaces between the numbers. (ie. 100000 rather than 100 000)
2. Enter in the interest rates for the 15 year loan and the 30 year loan. The interest rate will be provided to you by the organization from which you are getting your mortgage. The interest rates will differ according to the number of years over which the loan is amortized. The calculator is designed to calculate only the repayments for a fixed mortgage, so if you are taking out an adjustable rate mortgage, the calculation may not be accurate.
3. Once you have entered in all of the above information, simply press the ‘calculate’ button. The calculator will let you know the monthly repayment cost as well as the total amount that will need to be repaid for each loan.
Other Costs Involved
Once you have the information about the cost of your monthly repayments, you will be able to decide which option would make the most financial sense for you. However do keep in mind that our online mortgage comparison calculator strictly calculates the monthly repayments based on the mortgage amount and interest – it does not include hidden expenses involved in purchasing a property such as property taxes, rates, utility payments and homeowners association payments. You should therefore keep these extra costs in mind when you are deciding whether or not you can afford to purchase a home.
With our free online 15 year vs 30 year mortgage comparison calculator, you will be able to estimate accurately the amount of your monthly repayments. In addition, you can now also add a free mortgage comparison calculator widget to your own site, or share the calculator via a number of social media applications.
Don’t take out a mortgage without being fully informed – use our mortgage calculator and know exactly what you will be paying for your dream home.
How to Calculate 15 Year vs 30 Year Mortgage Comparison
Let’s be honest – sometimes the best 15 year vs 30 year mortgage comparison calculator is the one that is easy to use and doesn’t require us to even know what the 15 year vs 30 year mortgage comparison formula is in the first place! But if you want to know the exact formula for calculating 15 year vs 30 year mortgage comparison then please check out the “Formula” box above.