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$200,000 Mortgage Over 15 Years
Here is a $200,000 mortgage laid out over 15 years. The rate starts at 5.5 percent. Change the amount, the rate or the term to see a different loan.
At 5.5 percent the monthly payment comes to $1,634.17. Over the full term, the total paid is $294,150.
How the payment is worked out
Start by turning the yearly rate into a monthly one. 5.5 percent a year is 0.4583 percent a month. Next count the payments, which is 180 for 15 years. The payment is then the loan of $200,000 times the monthly rate, divided by one minus one over the growth factor. The growth factor is one plus the monthly rate multiplied by itself 180 times.
Worked example
Run the numbers for a $200,000 mortgage at 5.5 percent over 15 years. The payment is $1,634.17. Of the first payment, $916.67 is interest.
After 8 years you would still owe $113,720. That is 57 percent of the loan. The rest of the payments go mostly to principal.
Questions about this calculator
What if the rate on a $200,000 mortgage over 15 years were one point higher?
The payment would rise from $1,634.17 to $1,742.21, which is $108.05 more each month. One point lower would give $1,529.99.
Would paying $160 extra each month shorten a $200,000 mortgage over 15 years?
Yes. On this $200,000 loan an extra $160 each month ends the loan 1 year 11 months sooner and saves $13,532 of interest.
Is 15 years the right length for a $200,000 mortgage?
It depends on the monthly payment you can carry. At 5.5 percent this term costs $1,634.17 a month. A 30-year term would cost $1,135.58 a month and $208,808 in interest, compared with $94,150 over 15 years.
Does the $1,634.17 payment cover property tax and insurance?
No. The $1,634.17 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.