Scenario 1
Scenario 2
Scenario 3
| Scenario | Loan | Term | Rate | Monthly Payment | Total Cost | Total Interest | Difference |
|---|
How to Use the Mortgage Comparison Calculator
This tool lets you compare up to 3 different mortgage scenarios side by side. For each scenario, enter the loan amount, interest rate, and loan term in years. Click Compare Scenarios to see a detailed table showing the monthly payment, total cost over the life of the loan, total interest paid, and how each option stacks up against the best deal.
Common comparisons include:
- 15-year vs 30-year mortgage — See how a shorter term saves interest but increases monthly payments
- Different interest rates — Compare what a 0.5% rate difference means over 30 years
- Larger down payment impact — See how putting more down reduces total cost
- Fixed vs adjustable estimates — Compare a fixed rate against the initial ARM rate
15-Year vs 30-Year Mortgage: Which Is Better?
This is one of the most common mortgage decisions. Here's how they compare on a $300,000 loan at 6.5%:
| Feature | 15-Year | 30-Year |
|---|---|---|
| Monthly Payment | $2,613 | $1,896 |
| Total Interest Paid | $170,388 | $382,633 |
| Total Cost | $470,388 | $682,633 |
| Interest Savings | $212,245 saved | — |
The 15-year mortgage costs $717 more per month but saves over $212,000 in interest. The right choice depends on your cash flow: if the higher payment fits comfortably in your budget (keeping total housing costs under 28% of gross income), the 15-year is mathematically superior.
What Affects Your Mortgage Rate?
Understanding what determines your mortgage rate can help you secure a better deal:
- Credit score — The single biggest factor. A score above 760 typically gets the best rates. Each 20-point drop can add 0.125-0.5% to your rate.
- Down payment — Putting 20%+ down typically gets better rates and eliminates PMI.
- Loan type — Conventional loans often beat FHA/VA on rate if you have good credit and 20% down.
- Loan term — 15-year mortgages carry lower rates than 30-year (typically 0.5-0.75% less).
- Rate lock timing — Rates change daily. Lock your rate when you're satisfied with the offer.
Frequently Asked Questions
How much does a lower interest rate save?
Is a 15-year mortgage always better than a 30-year?
Should I buy points to lower my rate?
How do I compare mortgage offers from different lenders?
What's the difference between fixed and adjustable-rate mortgages?
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