Comparing Mortgage Terms

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 Amount ($)

$50,000 $10,000,000

First Loan Annual Interest Rate (%)

First Loan Term (years)

Second Loan Annual Interest Rate (%)

Second Loan Term (years)

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.

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