# Mortgage comparison: 15 years vs. 30 years

Determining which mortgage term is right for you can be a challenge. With a 15 year mortgage you will pay significantly less interest, but only if you can afford the higher monthly payment. Use this calculator to compare these two mortgage terms, and let us help you decide which term is better for you.

## This Financial Calculator requires SUN's Java™ Plug-in. If you see this message you will need to download SUN's Java™ Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing “Install ActiveX Control”.

You can also get SUN's Java™ Plug-in here: Get the Java™ Plug-in!

## Definitions

Mortgage amount
Original or expected balance for your mortgage.

Interest rate
Annual interest rate for your mortgage. Interest rates are generally lower for shorter term mortgages.

Marginal tax rate
This is your combined state and federal tax rate. This is used to calculate your potential income tax savings by deducting your mortgage interest. You can use the table below to assist you in estimating your Federal tax rate for 2012.

 Filing Status and Income Tax Rates 2012Caution: Do not use these tax rate schedules to figure 2011 taxes. Use only to figure 2012 estimates. Tax rate Married filing jointlyor qualified widow(er) Single Head of household Married filing separately 10% \$0 - 17,400 \$0 - 8,700 \$0 - \$12,400 \$0 - 8,700 15% \$17,400 - 70,700 \$8,700 - 35,350 \$12,400 - 47,350 \$8,700 - 35,350 25% \$70,700 - 142,700 \$35,350 - 85,650 \$47,350 - 122,300 \$35,350 - 71,350 28% \$142,700 - 217,450 \$85,650 - 178,650 \$122,300 - 198,050 \$71,350 - 108,725 33% \$217,450 - 388,350 \$178,650 - 388,350 \$198,050 - 388,350 \$108,725 - 194,175 35% over \$388,350 over \$388,350 over \$388,350 over \$194,175
Source: Revenue Procedure 2011-52 http://www.irs.gov
Monthly payment
Monthly principal and interest payment (PI). Both 30 year and 15 year mortgages are shown.

Total payments
Total of all monthly payments over the full term of the mortgage. Both 30 year and 15 year mortgages are shown.

Total interest
Total of all interest paid over the full term of the mortgage. Both 30 year and 15 year mortgages are shown.