1. What is a 15 Year Mortgage Calculator?

Definition: This calculator computes the monthly payment for a 15-year fixed-rate mortgage based on the loan amount and interest rate.

Purpose: It helps homebuyers and homeowners estimate their monthly payments for a 15-year mortgage term.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M \) — Monthly payment (USD)
• \( P \) — Loan principal amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( 180 \) — Number of payments (15 years × 12 months)

Explanation: The formula calculates the fixed monthly payment required to pay off the loan over 15 years with interest.

3. Benefits of 15-Year Mortgages

Details: 15-year mortgages typically have lower interest rates than 30-year mortgages and allow you to build equity faster while paying significantly less total interest.

4. Using the Calculator

Tips: Enter the loan amount and annual interest rate. The calculator will show your estimated monthly payment for a 15-year term.

5. Frequently Asked Questions (FAQ)

Q1: How does a 15-year mortgage compare to a 30-year?
A: 15-year mortgages have higher monthly payments but lower total interest costs and faster equity buildup.

Q2: What's included in the monthly payment?
A: This calculates principal and interest only. Your actual payment may include taxes, insurance, and PMI if applicable.

Q3: Can I change the payment frequency?
A: This calculator assumes monthly payments. Biweekly payments would require a different calculation.

Q4: How accurate is this calculator?
A: It provides a close estimate, but actual loan terms may vary based on lender fees and other factors.

Q5: What if I make extra payments?
A: Extra payments reduce principal faster and can shorten the loan term, but this calculator assumes regular fixed payments.