Refinancing from a 30-year to a 15-year mortgage can save you a significant amount in interest and help you build equity faster. However, it typically comes with higher monthly payments and upfront closing costs. There are good reasons why 15-year mortgages make up a small fraction of newly originated mortgages. To be specific, 4.2% in late 2024 compared to 88% for 30-year loans. This calculator helps you compare your current loan to a potential refinance scenario to see if it makes financial sense for you.
First, let's confirm the details of your current mortgage. The values from your question have been pre-filled. Note that mortgage calculations are based on Principal and Interest (P&I), so your actual payment including taxes and insurance (PITI) will be higher.
Now, enter the details for the 15-year mortgage you are considering. A 15-year loan builds equity much faster, acting as a form of forced savings. The trade-off is a higher monthly payment, which reduces financial flexibility for other investments or expenses. You can also decide whether to pay the refinance costs out of pocket or roll them into the new loan balance.
🏠 Current 30-Year Mortgage
🚀 Proposed 15-Year Refinance
See Also
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For further related reading, check out:
- [https://www.scotsmanguide.com/news/where-did-the-15-year-mortgage-go/](Where did the 15 year mortgage go?)
- [https://www.investopedia.com/articles/personal-finance/042015/pros-and-cons-15year-mortgage.asp](Investopedia's Pros and Cons)
📊 Results
New Monthly P&I Payment
Breakeven Point (Months)
0
Years to Payoff Change
18
Lifetime Interest Saved
Calculator updated by mahmoud (v25.8.3) · View history
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Disclaimer: This content and any calculations provided are for informational purposes only. The views, calculations, and methodologies expressed are those of the author and do not necessarily reflect those of this platform. Not financial advice. Users are solely responsible for any decisions made based on this information.
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