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 shorter-term mortgage option.

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)
• \( 180 \) — Total number of payments (15 years × 12 months)

Explanation: The formula accounts for both principal and interest payments over the 15-year term.

3. Benefits of a 15-Year Mortgage

Details: A 15-year mortgage typically has lower interest rates than 30-year loans and allows you to build equity faster while paying significantly less interest over the life of the loan.

4. Using the Calculator

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

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 much lower total interest costs and faster equity building.

Q2: What's included in the monthly payment?
A: This calculation shows principal and interest only. Your actual payment may include taxes and insurance.

Q3: Are interest rates different for 15-year mortgages?
A: Yes, 15-year mortgages typically have lower interest rates than 30-year mortgages.

Q4: Can I pay extra on a 15-year mortgage?
A: Most mortgages allow extra payments, which can further reduce your interest costs.

Q5: How much can I save with a 15-year vs 30-year mortgage?
A: You can save tens of thousands in interest over the life of the loan, though monthly payments will be higher.