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Calculate Fifteen Year Home Loan Payments

Fixed-rate 15-year Home Loan Calculator

Description Amount
House price:
Downpayment:
Loan APR (Get Current Rates):
Term (years):
Property taxes (%):
Homeowner insurance (%):
PMI (%):
Monthly HOA fees ($):
Closing costs (if financed in loan):
All-in monthly payment:
Principal & Interest:
Taxes, Insurance, PMI & HOA:
Amount Borrowed (exclusive of closing cost):

Current Fifteen Year Mortgage Rates Available Locally

The following table shows current 15-year mortgage rates in your local area.

What Loans Do Home Buyers Choose?

Across the United States 88% of home buyers finance their purchases with a mortgage. Of those people who finance a purchase, nearly 90% of them opt for a 30-year fixed rate loan. The 15-year fixed-rate mortgage is the second most popular home loan choice among Americans, with 6% of borrowers choosing a 15-year loan term.

Loan Type Percent of Borrowers Buying a Home Percent of All Home Buyers
30-year Fixed 90% 79.2%
15-year Fixed 6% 5.28%
Adjustable-rate 2% 1.76%
Other Fixed-Rate Loan Terms 2% 1.76%
Use Any Type of Financing 100% 88%
Paid Cash in Full N/A 12%

Source: Freddie Mac's 2016 home buyer statistics, published on April 17, 2017.

When interest rates are low (as they were after the global recession was followed by many rounds of quantitative easing) home buyers have a strong preference for fixed-rate mortgages. When interest rates rise consumers tend to shift more toward using adjustable-rate mortgages to purchase homes.

Advantages of a 15-Year Fixed-Rate Home Loan

The big advantage of a 30-year home loan over a 15-year loan is a lower monthly payment. However, for those who can afford the slightly higher payment associated with a 15-year mortgage are getting a better deal in almost every possible way. Here are some of the advantages of a 15-year mortgage over a 30-year mortgage:

  • Lower interest rates: While both loan types have similar interest rate profiles, the 15-year loan typically offers a slightly lower rate to the 30-year loan.
  • Build home equity much faster: People typically move homes or refinance about every 5 to 7 years. If a person stretches their loan payments out to 30-years they build limited equity in their home in the early portion of their loan.
  • Greater life certainty: The recovery since the 2008 financial crisis has been uneven, with increasing income inequality & a greater sense of economic uncertainty than just about any economic recovery since the great recession which followed the 1929 stock market crash. The rise of globalism, monopoly technology platforms, distributed software with zero marginal cost & artificial intelligence are likely to create massive & ongoing waves of structural unemployment. Few people know what the world will be like in 20 years, so perhaps it doesn't make sense to finance the largest purchase of their lives across 30 years. Those who build equity faster will have greater certainty in their lives & won't be anywhere near as worried about what happens if they lose their job 23.5 years from today.

Monopoly Board.

The following table shows loan balances on a $200,000 home loan after 5, 10 & 15 years for loans on the same home.

Mortgage Type 15-YR FRM 30-YR FRM
Interest Rate (APR) 3.1% 3.7%
Monthly Principal & Interest $1,416.53 $937.60
Total Monthly Payment $2,004.02 $1,525.09
Loan Balance 5 Years $145,999.80 $183,333.98
Loan Balance 10 Years $78,639.08 $158,836.20
Loan Balance 15 Years $0.00 $129,368.36
Equity Built, 15 Years $200,000 + Appreciation $70,631.64 + Appreciation
Interest Paid, 15 Years $51,275.94 $94,436.36
Total of 180 Payments $360,723.60 $274,516.20
Remaining P & I payments 0 180
Remaining Interest Expense $0 $39,397.24
Total Interest Expense $51,275.94 $133,833.60

Please note the above used interest rates were relevant on the day of publication, but interest rates change daily & depend both on the individual borrower as well as broader market conditions.

The above calculations presume a 20% down payment on a $250,000 home & a closing cost of $3,700 which is rolled into the loan.

Historical 15-YR & 30-YR Mortgage Rates

The following table lists historical average annual mortgage rates for 15-year & 30-year mortgages.

Year 30-YR FRM Rate 30-YR Points 15-YR FRM Rate 15-YR Points 15 vs 30 Rate Diff
2016 3.65 0.5 2.93 0.5 -0.72
2015 3.85 0.6 3.09 0.6 -0.76
2014 4.17 0.6 3.29 0.6 -0.88
2013 3.98 0.7 3.11 0.7 -0.87
2012 3.66 0.7 2.93 0.7 -0.73
2011 4.45 0.7 3.68 0.7 -0.77
2010 4.69 0.7 4.1 0.7 -0.59
2009 5.04 0.7 4.57 0.7 -0.47
2008 6.03 0.6 5.62 0.6 -0.41
2007 6.34 0.4 6.03 0.4 -0.31
2006 6.41 0.5 6.07 0.5 -0.34
2005 5.87 0.6 5.42 0.6 -0.45
2004 5.84 0.7 5.21 0.6 -0.63
2003 5.83 0.6 5.17 0.6 -0.66
2002 6.54 0.6 5.98 0.6 -0.56
2001 6.97 0.9 6.5 0.9 -0.47
2000 8.05 1 7.72 1 -0.33
1999 7.44 1 7.06 1 -0.38
1998 6.94 1.1 6.59 1.1 -0.35
1997 7.6 1.7 7.13 1.7 -0.47
1996 7.81 1.7 7.32 1.7 -0.49
1995 7.93 1.8 7.48 1.8 -0.45
1994 8.38 1.8 7.86 1.8 -0.52
1993 7.31 1.6 6.83 1.6 -0.48
1992 8.39 1.7 7.96 1.7 -0.43
1991 9.25 2
1990 10.13 2.1
1989 10.32 2.1
1988 10.34 2.1
1987 10.21 2.2
1986 10.19 2.2
1985 12.43 2.5
1984 13.88 2.5
1983 13.24 2.1
1982 16.04 2.2
1981 16.63 2.1
1980 13.74 1.8
1979 11.2 1.6
1978 9.64 1.3
1977 8.85 1.1
1976 8.87 1.1
1975 9.05 1.1
1974 9.19 1.2
1973 8.04 1
1972 7.38 0.9

Source: Freddie Mac PMMS.

20% Down Payment

Home buyers who have a strong down payment are typically offered lower interest rates. Homeowners who put less than 20% down on a conventional loan also have to pay for property mortgage insurance (PMI) until the loan balance falls below 80% of the home's value. This insurance is rolled into the cost of the monthly home loan payments & helps insure the lender will be paid in the event of a borrower default. Typically about 35% of home buyers who use financing put at least 20% down.

Conforming Mortgage Limits

As of 2017 Congress set the conforming loan limit for single unit homes across the continental United States to $424,100, with a ceiling of 150% that amount in areas where median home values are higher. The limit is as follows for 2, 3, and 4-unit homes $543,000, $656,350, and $815,650. The limits are higher in Alaska, Hawaii, Guam & the U.S. Virgin Islands. Loans which exceed these limits are classified as jumbo loans.

Homes NOT in Designated High-cost Areas

The limits in the first row apply to all areas of Alabama, Arizona, Arkansas, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Texas, Vermont, Wisconsin & most other parts of the continental United States.

The limits in the second row apply to all parts of Alaska, Guam, Virgin Islands, Washington D.C & some parts of Hawaii.

Units 1 2 3 4
Continental U.S. $424,100 $543,000 $656,350 $815,650
Alaska, Hawaii, Guam & U.S. Virgin Islands $636,150 $814,500 $984,525  $1,223,475

Homes in Designated High-cost Areas

The areas covered in this table are further detailed below the map in state-by-state tables.

Units 1 2 3 4
Continental U.S. $636,150 $814,500 $984,525  $1,223,475
Alaska, Hawaii, Guam & U.S. Virgin Islands $954,225 $1,221,750 $1,476,775 $1,835,200