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
The First Loan Annual Interest Rate and Second Loan Annual Interest Rate are both hypothetical examples used for illustrative purposes only. They do not represent any specific mortgage rate. Actual returns will fluctuate. The illustration does not take into account any other factors, including loan origination fees.
Loan Comparison Results
First Loan
Second Loan
Visual Comparison
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.
Related Content
Risk Perspective
Is it possible to avoid loss? Not entirely, but you can attempt to manage risk.
You Would Rather Be...
Are you a thrill seeker, or content to relax in the backyard? Use this flowchart to find out more about your risk tolerance.
Retirement Traps to Avoid
Beware of these traps that could upend your retirement.