You are viewing a preview location.

Comparing Mortgage Terms

For most, a home is the most significant purchase they will ever make. Use this calculator to see the difference between a shorter- and longer-term mortgage when strategizing for the future.

Loan Parameters

The First Loan Annual Interest Rate and Second Loan Annual Interest Rate are both hypothetical examples used for illustrative purposes only. They do not represent any specific mortgage rate. Actual returns will fluctuate. The illustration does not take into account any other factors, including loan origination fees.

$50,000 $10,000,000

Loan Comparison Results

First Loan

Monthly Payment $2,532
Total Interest Paid $155,683
Total Amount Paid $455,683

Second Loan

Monthly Payment $1,996
Total Interest Paid $418,527
Total Amount Paid $718,527

Visual Comparison

Monthly Payment
$2,532
First Loan
$1,996
Second Loan
Total Interest Paid
$155,683
First Loan
$418,527
Second Loan
Total Amount Paid
$455,683
First Loan
$718,527
Second Loan

Keep in mind that mortgage lenders have rules that they follow, such as the popular 28/36 guideline. It suggests that no more than 28 percent of a person's gross monthly income should be spent on housing costs (which includes your mortgage, taxes, and insurance) and no more than 36 percent on all debt. So before you get too deep into mapping out mortgage scenarios, it might be best to speak with a professional who can guide you through the numbers.

Have A Question About This Topic?

Thank you! Oops!

Related Content

You've Made Your Career Move - Now What?

You've Made Your Career Move - Now What?

With a little planning, you can avoid leaving money on the table as you switch jobs.

FIRE Retirement

FIRE Retirement

This short, informative article teaches the basics of the FIRE movement.

In the Markets Now: Bubbles

In the Markets Now: Bubbles

Amid FOMO, the attention economy, and talk of bubbles, every investor must run their own race.