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$150,000 Mortgage Over 15 Years
Borrowing $150,000 for 15 years sets a fixed monthly payment for the life of the loan. The calculator starts at 5.5 percent. Change the rate or the length to compare.
At the start the monthly bill is $1,225.63. All 180 payments together come to $220,613.
How the payment is worked out
Think of the payment as the amount that makes all 180 future payments worth exactly $150,000 at the start with a monthly rate of 0.4583 percent. Written out it is the loan times the monthly rate, divided by one minus one over one plus the monthly rate, raised to the power of 180.
Worked example
For a $150,000 mortgage at 5.5 percent over 15 years the payment is $1,225.63. The first payment splits into $687.50 of interest and $538.13 of principal.
Total interest on this loan is $70,613. After 8 years of payments the balance has fallen to $85,290.
Questions about this calculator
What if the rate on a $150,000 mortgage over 15 years were one point higher?
The payment would rise from $1,225.63 to $1,306.66, which is $81.04 more each month. One point lower would give $1,147.49.
Would paying $120 extra each month shorten a $150,000 mortgage over 15 years?
Yes. On this $150,000 loan an extra $120 each month ends the loan 1 year 11 months sooner and saves $10,149 of interest.
Is 15 years the right length for a $150,000 mortgage?
It depends on the monthly payment you can carry. At 5.5 percent this term costs $1,225.63 a month. A 30-year term would cost $851.68 a month and $156,606 in interest, compared with $70,613 over 15 years.
Does the $1,225.63 payment cover property tax and insurance?
No. The $1,225.63 covers principal and interest only. Tax, insurance and any mortgage insurance would sit on top of it.
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This page is for education only and is not financial or tax advice.