How this number is made
A 15-year loan usually has a higher payment and less interest. The rates are often different, so this page takes both. The cheaper total is not automatically the better loan if the higher payment squeezes the rest of the budget.
- Use the two rates you were actually quoted.
- The loan amount is the same in both columns.
Formula
Each payment is the standard fixed payment for its rate and term. Interest is payment × months − loan.
Worked example
With the figures already in the form, interest saved by the 15-year is $242,081.
Questions
What if I take the 30-year and pay it like a 15?
You keep the option to drop back to the lower required payment. You may not get the 15-year rate. The extra-payment page runs that case.
Are taxes included?
No. They are the same house either way, so they do not change the comparison of the loans.