For most, a home is the most significant purchase they will ever make. Use this calculator to see the difference between a shorter- and longer-term mortgage when strategizing for the future.

Loan Parameters

$50,000 $10,000,000

Loan Comparison Results

First Loan

Monthly Payment $2,532
Total Interest Paid $155,683
Total Amount Paid $455,683

Second Loan

Monthly Payment $1,996
Total Interest Paid $418,527
Total Amount Paid $718,527

Visual Comparison

Monthly Payment
$2,532
First Loan
$1,996
Second Loan
Total Interest Paid
$155,683
First Loan
$418,527
Second Loan
Total Amount Paid
$455,683
First Loan
$718,527
Second Loan

Keep in mind that mortgage lenders have rules that they follow, such as the popular 28/36 guideline. It suggests that no more than 28 percent of a person's gross monthly income should be spent on housing costs (which includes your mortgage, taxes, and insurance) and no more than 36 percent on all debt. So before you get too deep into mapping out mortgage scenarios, it might be best to speak with a professional who can guide you through the numbers.

Have A Question About This Topic?

Thank you! Oops!
 

Related Content

The Cost of Procrastination

The Cost of Procrastination

Procrastination can be costly. When you get a late start, it may be difficult to make up for lost time.

The ABCs of Zero Coupon Bonds

The ABCs of Zero Coupon Bonds

Understanding some basic concepts may help you assess whether zero-coupon bonds have a place in your portfolio.

How Much Do I Need To Retire?

How Much Do I Need To Retire?

How much is enough to retire? It depends on your lifestyle, timeline, and more. Use this calculator to get a personalized est