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$150,000 Mortgage Over 20 Years
Borrowing $150,000 for 20 years sets a fixed monthly payment for the life of the loan. The calculator starts at 6 percent. Change the rate or the length to compare.
At the start the monthly bill is $1,074.65. All 240 payments together come to $257,915.
How the payment is worked out
Think of the payment as the amount that makes all 240 future payments worth exactly $150,000 at the start with a monthly rate of 0.5 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 240.
Worked example
For a $150,000 mortgage at 6 percent over 20 years the payment is $1,074.65. The first payment splits into $750.00 of interest and $324.65 of principal.
The total paid is $257,915. Interest is $107,915 of that. That works out to 72 cents for each dollar borrowed.
Questions about this calculator
What if the rate on a $150,000 mortgage over 20 years were one point higher?
The payment would rise from $1,074.65 to $1,162.95, which is $88.30 more each month. One point lower would give $989.93.
Would paying $110 extra each month shorten a $150,000 mortgage over 20 years?
Yes. On this $150,000 loan an extra $110 each month ends the loan 3 years 2 months sooner and saves $19,761 of interest.
Is 20 years the right length for a $150,000 mortgage?
It depends on the monthly payment you can carry. At 6 percent this term costs $1,074.65 a month. A 30-year term would cost $899.33 a month and $173,757 in interest, compared with $107,915 over 20 years.
Does the $1,074.65 payment cover property tax and insurance?
No. The $1,074.65 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.