15 Year Fixed Mortgage Calculator – NerdWallet
Taking out a 15-year fixed rate mortgage — or refinancing a mortgage — can be a smart move. First, you’ll likely get a lower interest rate. This, combined with a shorter loan term, means you’ll pay significantly less interest over the term of your loan than you would with longer-term mortgages.
And a 15-year mortgage is a much better match for how long homeowners typically stay in a home — just eight years, according to a 2019 report from Atom Data Solutions.
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There are plenty of advantages to a 15-year home loan, but it has a higher payment than longer-term mortgages, so you want to be sure the monthly bill will fit within your budget. That’s where a 15-year fixed mortgage payment calculator can help.
Analyze the numbers and see if a 15-year fixed rate mortgage might be right for you.
15 Year Mortgage Calculator
What is a 15-year fixed rate mortgage?
A 15-year fixed rate mortgage is a home loan structured to pay off the amount owed over 15 years. A fixed rate means your interest rate will never change for the life of the loan.
How is a 15-year mortgage calculated?
There are only four steps required to calculate your 15-year mortgage payment, but the more information you provide, the more accurate the result. Here are the steps to follow with the NerdWallet 15 Year Mortgage Calculator:
Provide the purchase price of the house.
Enter your expected down payment.
Since you are considering a 15-year loan, enter “15” as the term of the loan. You can play around with any number of loan terms to get an idea of how each would affect your monthly payment.
Enter your estimated interest rate.
The results will appear instantly below the calculator entries, in the “Summary Results”, showing a breakdown of monthly payments as well as additional payment and interest details.
Important Note: If you are putting down less than 20%, you will likely be paying mortgage insurance. This is a variable that the 15-year-old calculator does not take into account. Discover our mortgage calculator with PMI to see how private mortgage insurance might affect your payment.
To get a better view of what mortgage interest rate you will qualify, click on the green “Get Custom Mortgage Rates” box just above the summary results. Once you’ve set a custom rate, you can use it to refine the interest rate used to determine your monthly payment in the 15-year mortgage calculator.
How accurate is your monthly mortgage payment estimate?
Results can be improved with just a little more information. Your 15-year mortgage calculation will be most accurate when you provide:
The annual property tax due on the property you buy or refinance. (See the “advanced entries” section of the calculator.) For a house you are looking to buy, your real estate agent can provide you with this information.
The annual home insurance premium. Again, when purchasing, you may be able to obtain this from your real estate agent or your Loan estimate.
Monthly dues to the association of co-owners. Your agent probably has that too.
When to Consider a 15-Year Fixed Mortgage
A 15-year mortgage can make sense in almost any home buying scenario, especially if you’re sure your income won’t decrease. There are really few downsides other than the higher payout. You’ll get a lower interest rate upfront, save a ton in interest because your loan term is half that of a 30-year loan, and gain equity in your home faster.
And that lower interest rate is locked in for the term of the loan with a fixed rate mortgage. Your rate and monthly principal payment will not change.