Finance
15-Year vs. 30-Year Mortgage on a $400K Home — What's the Difference?
The Answer
$190,000 interest savings
The Full Picture
On a $400,000 mortgage: the 30-year at 7% means a $2,661/month payment and $557,960 in total interest. The 15-year at 6.5% means $3,487/month but only $227,660 in interest — saving $330,300 over the life of the loan at the cost of $826/month higher payments.
By the Numbers
30-year monthly payment$2,661
30-year total interest$557,960
15-year monthly payment$3,487
15-year total interest$227,660
Interest savings (15-year)$330,300
Change the numbers
These numbers are just a scenario. Use our Mortgage Calculator to see what your specific situation looks like.