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The Learning Center
 | Calculators
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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 get a better idea which term is better for you.
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Definitions |
- Mortgage amount
- The original or expected balance for your mortgage.
- Interest rate
- The 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. Use the chart below to estimate based on your Federal 2010 taxable income. Information about estimating your state tax rate can be found at http://www.taxadmin.org/fta/rate/ind_inc.pdf
| Tax Rate |
Maried filing jointly or Qualified Widow(er) |
Single |
Head of household |
Married filing separately |
| 10% |
$0 - 16,750 |
$0 - 8,375 |
$0 - $11,950 |
$0 - 8,375 |
| 15% |
$16,751- 68,000 |
$8,376- 34,000 |
$11,951- 45,550 |
$8,376- 34,000 |
| 25% |
$68,001- 137,300 |
$34,001- 82,400 |
$45,551- 117,650 |
$34,001- 68,650 |
| 28% |
$137,301- 209,250 |
$82,401- 171,850 |
$117,651- 190,550 |
$68,651- 104,625 |
| 33% |
$209,251- 373,650 |
$171,851- 373,650 |
$190,551- 373,650 |
$104,626- 186,825 |
| 35% |
over $373,650 |
over $373,650 |
over $373,650 |
over $186,825 |
Source: http://www.irs.gov/pub/irs-drop/rp-09-50.pdf
- Monthly payment
- Your monthly principal and interest payment (P&I). Both 30-year and 15-year mortgages are shown.
- Total payments
- The total of all monthly payments over the full term of the mortgage. Both 30-year and 15-year mortgages are shown.
- Total interest
- The 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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